Having worked as construction claims consultants and experts over the past 22 years, Holloway Consulting understands the challenges contractors face in achieving profitability on projects. This is the latest page in our series about how Holloway Consulting helps contractors resolve claims and disputes and remain profitable.
Construction Contract Claims
Disputes Consulting Expert Witness Work
Construction Reality Versus Utopia
In utopia, the owner never makes any changes – the A/E’s documents are error-free – the contractor performs perfectly – and Mother Nature behaves herself. Regrettably, construction utopia does not exist. In the real world, with uncanny predictability, the forces of the Owner, A/E, contractor, and Mother Nature often combine to create conflict: The Owner changes his mind – The A/E changes the design – The Contractor fails to perform properly – Mother Nature changes what the others have missed. A claim results.
Construction Claim Elements
The 15,000 subscribers to Holloway’s newsletter understand that a construction claim is an unresolved dispute between the parties to a construction contract that is comprised of three elements:
1. Entitlement – the contractual or legal basis of the claim,
2. Quantum – the damages or dollar value of the claim, and
3. Causation – the relationship between the entitlement and the damages.
Any one element, without the other two, is of little value.
Claims are a common element of today’s construction industry. The contractor who proudly boasts, “My company has never had a claim”, is endanger of becoming an extinct species. To survive in today’s construction marketplace, the contractor must understand his rights and be quick to implement the techniques of survival when a potential claim situation arises.
Read the next article on contract claims.
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Construction Consultants and Expert Witnesses
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