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TYPES OF CONSTRUCTION CLAIMS?

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TYPES ENTITLEMENTS

You dont have to be an attorney to understand the basics

of claim types andentitlements the legal basis of
construction claims. You can have entitlementbut no
damages; you can have damages but no entitlement.
Unless you have both, you should not expect recovery
under a contract claim.
Acceleration Construction Schedule Acceleration is the process of
completing or attempting to complete the original scope of
work earlier than the contract completion date, or
completing or attempting to complete the original scope of
work plus additional work by the original contract
completion date, or . . . attempting to complete the original
scope of work on the original completion in spite of

excusable delays, or . . . attempting to complete the

original scope of work on the original completion in spite of
non-excusable delays, or . . . a number of other
combinations. Acceleration can apply to engineering,
design, manufacturing or construction. Ultimately, the
contractor must show that it actually took discrete actions
intended to increase the units of work put in-place each
day/week/month.
Cardinal Change While there is no exact formula for
determining whether aCardinal Change has been ordered, the
basic question remains essentially as follows: Was the
modified job the same as the parties bargained for when
the contract was let, or did the change fundamentally alter
the nature of the work being constructed?
Constructive Change Constructive Change entitlement permits
contractors to be paid under the changes clause, even
where no change order has been issued. Boards and
Courts have held that where a contractors performance
requirements were changed by some action or inaction
which amounted to a direction to the contractor, there had
been a constructive change which is compensable.
Contract Termination When contract termination has occurrred
before the contractor has begun the work, the contractor
may be entitled to recover the loss of the expected profit,
or the difference between the contract price and the

anticipated cost of the work. If the owner has terminated

the contract after the contractor has begun the work, the
contractor may be entitled to recover the loss in various
ways. If the contractor has completed the work in full
compliance with the contract prior to termination, she
should expect to recover the full contract price. Recovery
and liability under terminated contracts varies widely.
Defective and Deficient Contract Documents As a general
proposition, common law imposes an implied warranty that
the contract documents will be reasonably free of errors.
This implied warranty allows the bidder to assume that the
contract documents are reasonably correct and not defective,
and that if those documents and specifications are
followed, a satisfactory product will result.
Schedule Delay A job condition and entitlement wherein
at least one critical path work schedule activity has started
later than planned and/or the duration of at least one
critical path schedule activity has been extended beyond
that of the original duration. These are the two ways in
which schedule delay can occur.
Differing Site Conditions If the site conditions differ from what
was indicated in the contract or from what would be
apparent to a Contractor making pre-bid inspections, and
result in a change of the work or impossibility of
performance, the Contractor may have entitlement to

additional compensation to capture all of these costs, via

an Equitable Adjustment.
Directed Change A owners unilateral change directed
change to the terms and conditions of the contract is the
most common form of this entitlement.
Implied Warranty An implied warranty is a contract law
term for certain assurances that are presumed to be made
in the contract due to the circumstances of the deal. Those
relating to the plans and specs are most notable in
constructiondisputes.
Impossibility of Performance For such a defense to be
raised, performance must not merely be difficult or
unexpectedly costly for one party; there must be no way
for it to actually be accomplished. There must
be Impossibly of Performance.
Maladministration The owners deficient, overzealous or
otherwise flawed performance of its duties under the
agreement.
Owner-Furnished Items Some deficiency in the goods
and services provided by the Owner such that the terms
and conditions of the agreement have been violated.
Strikes Most commonly this entitlement refers to the
adverse impacts on the contractors operations by a strike
under one its labor agreements.

Superior Knowledge A principle in United States contract

law that states that the government or Owner must
disclose to a contractor otherwise unavailable information
that is vital to contract performance.
Weather Usually refers to the adverse impacts on the
contractors time and cost caused by weather events that
are outside of historical norms and those anticipated by
the parties.
Work Suspension Refers to the owners temporary or
permanent suspension of construction work at the site.
This entitlement is now an essential component for the
recovery of unabsorbed home office overhead costs by the
contractor under federal contracts.
The Holloway Consulting Group, LLC

Construction Claims Experts

10885 W. Beloit Pl.
Lakewood, CO 80227
Denver Phone: (303) 984-1941
Fax: (303) 716-0432
Email: steve.holloway@disputesinconstruction.com
Blog: disputesinconstruction.com
Web: hcgexperts.com
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