Construction Project ‚Claims‘ – A chancy challenge for Contractors
Towards project completion construction project contractors worldwide often face an increasingly chancy project situation as their project balance slides more and more into the debit zone due to
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- losses caused by pre-financed and accordingly claimed project changes / additions (claims) executed during the project history
- and if, further losses from the thread of client’s LD-claims
- and if, further losses as the unsolved claim issues prevent the contractor to continue with important contractual project closure milestones like issuance of the completion certificate, transfer of plant operation / -ownership / -risk to the client, start of the maintenance / warranty period, end of site set-up, closure of performance bond / LOC / payment securities & insurances, acceptance of the final statement / invoice and related payment as well as the internal Project closure.
The only way for the contractor to recover from this chancy project situation is to prove their project claim rights on the merit (party contractually attributable for claim) and in terms of amount (claimed additional cost and -time) and to prove also their right to reject the client’s LD-claims. Such proof must be based on the project claims documentation.
However, experiences show as main causes for claims failures
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- client‘s cost pressure
- contractor’s evidence problems regarding the claim entitlement
- contractor’s insufficient claims documentation / -correspondence
- contractor’s difficulties to ascertain the claims on the merit
- contractor’s lack of juristically knowledge of site management
- contractor’s lack of an additions- / claims management.
Often, claims became part of a litigation process (e. g. Arbitration / Dispute Arbitration Board, if).
GTC System for Project- & Claims Control – A Solution for Contractor’s chancy challenge
As part of the contractor’s efforts to shift the chancy project situation back towards the benefit zone GTC offer their services to elaborate with their innovative GTC System within a short period –based on the contractor’s available inhomogeneous project data- a plausible structured, homogeneous and facts-based set of claims documentation in order to present to the client / project stakeholders
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- the causality for the contractor’s claim rights on the merit and in terms of amount
- and the causality for the contractor’s right for an extension of time instead of the client‘s right for LD-claims.
Link to GTC System
Link to GTC Example Project
Link to GTC Contact