Construction claim calculations detailed enough? My claim got kicked out, why!! Part 4 of 4
Are your claim calculations adequate enough?
Sometimes we are asked by clients, why was our claim unsuccessful? There are potentially many reasons for this, but from our experience, the most common and significant reasons that occur time and time again, can easily be identified.
I consider there to be four major causes:
Number 4: insufficiently detailed construction claim calculations
The quantum of a claim should, in theory at least, be the easy bit.
But cost-based claims are often pleaded on a total cost basis, incorporating additional costs that are not caused by events the client is responsible for, and failing to represent the actual costs incurred.
It is rarely effective for a contractor to simply deduct the actual cost incurred from the bid cost and assume that the remainder is the total liability of the client. Contractors have their own inefficiencies, increased costs and delays that must be incorporated into the calculations.
Contractors should avoid claiming for any costs that are not increased by the prolongation of the project, and ‘plug figures’ or assessments should never be used in place of actual costs, which should be evidenced by reference to expenditure records.
Like all the component parts of your claim, the quantum should tell the true story of what happened, the impact of what happened, and why the client is responsible. By sticking to the facts and evidencing them carefully, you can save yourself the time and money that a poorly made claim will cost.