Top 6 Types of Claims in Construction Contracts

The contract is the fundamental unit of construction projects. Keeping this in view, the contracting parties try their best to evade disputes based on the contractual papers. The documents are prepared well along with insurance to eliminate the risks. But, it is possible to stay away from claims only when you have proper knowledge of different types of claims in the contracts.

Want to know more? Keep reading the post for detailed knowledge and better prepare to avoid such complexities.

Different claims types in construction

The construction industry is one of the most important sectors in any country. You will surely agree that construction is crucial for progress, success, and economic stability.For this reason, the building process is given higher priority in many regions, including the Middle East and the Gulf States. Owing to this, the process of contracts is regulated under commercial laws and construction regulations.

Let’s consider a few essential types of contractual claims for learning better to ensure effective requirement compliance:

1. Bond Claims

The state offers greater rights to private project owners, especially in the UAE. So, the owners can demand bonds for the surety of in-time project delivery. It bounds the builders to ensure the provision of everything under the contract, including the bonds. In case that the contractor is unable to provide the bond token, owners can claim for compensation.

2. Construction Delay Claims

Delays are the most comment types of claims. When a project is initiated in the construction industry, the builders agree to complete the project within a certain deadline. It is imperative to comply with the deadlines. Therefore, if the builder makes adjournments construction that leads to a delay in the project, then the project owner can make a claim.

On the other hand, if the project owner has delayed payments, which led to a postponement of the project, the contractor may ask for a time extension or other claim depending on the situation. So, the best thing to deal with such a situation is to get construction claims consultants servicesin Dubaifor resolving the issues peacefully.

3. Construction Defect Claims

Essentially, the defects in the construction can be the poor design, the use of low-quality materials, and related things. The damage caused within a certain duration after construction is handled under the contract.

Everything related to the construction process is usually noted down in the contractual documents. So, if the builders show negligence and construct defective buildings, the owner can claim as per the requirements mentioned in the contract. It helps to project the owners for post-construction defects and related elements.

4. Mechanic’s Lien Claims

The suppliers and subcontractors file the claims under Mechanic’s Lien in case of any objection related to the supply regulations, or provision of labor. It is imperative to deal with such claims under the clauses of contracts to handle the matters technically.

However, the state laws enable the subcontractors and other parties responsible for the supply of materials and the workforce for raising their concerns in case of any injustice. Generally, the sub-contracting parties use these types of claims in construction claims for payment recovery.

5. Breach of Contract Claims

The contract is binding on all the involved parties to comply with the agreed rules and regulations for the construction. Any breach in the contractual regulations may lead to disputes. The contracting parties can make a claim for compensation as per the laws of the state and mention principles in the documents. However, the claim is made when a breaching party has a negative impact on the non-breaching parties under a construction contract.

6. Failure-To-Disclose Claims

Real estate dealers and property owners are required to disclose detailed information about the land structure, potential requirements for building, durability, and value to the buyers. If the buyers find something contrary to the provided information, then he or she can make a claim. However, before that, it is better to consult with the construction claims consultants Dubai based professionals to make a fair deal out of confusion. It is because sometimes buyers are not able to reasonably know the situation as the claim should be made before transferring the property price.

Dealing with contractual claims? Hire experts!

Summing up, the construction industry requires detail-oriented analysis and vigilance to ensure smooth working. Any disturbance in normal working can lead to disputes. In this regard, claims are risky when it comes to the construction industry. Therefore, it is better to avoid them, and if you get into it, then deal with it wisely.

Are you facing some issues but unable to identify the types of claims related to the contracts in construction? Better to look for solutions with experts’ opinions. Acquire professional services for handling construction claims to resolve the issues peacefully.

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