Review the Causes and Administrative Costs of such claim

Claims commonly arise between the parties to construction contracts. This can be as a result of problems such as delays, changes, unforeseen circumstances, insufficient information and conflicts.

Jorge Lopez

10/31/20231 min read

Construction claims are a common occurrence in the construction industry. These claims arise when there is a dispute between the contractor and the client regarding various aspects of the construction project. They can be related to delays, cost overruns, defective workmanship, or non-compliance with contractual obligations. Construction claims can be complex and time-consuming, often requiring the involvement of legal experts and arbitrators to resolve the issues. The resolution of these claims involves a thorough examination of the contract documents, project records, and any relevant correspondence. It is crucial for both parties to present their arguments and evidence effectively to support their position. Ultimately, the goal is to reach a fair and equitable settlement that satisfies both parties and allows the construction project to move forward smoothly.

  • The global average of a construction dispute rose to $54.26 million, and the average length of a dispute dropped to 13.4 months in 2020, according to the 2021 Global Construction Disputes Report.

  • In 2020, the American Arbitration Association administered 9,538 business-to-business cases. The largest mediated construction case was $105 million, while the largest arbitration case was $1.4 billion. The total value of all claims and counterclaims in 2020 was $21 billion.

The more time and hostility, the higher the cost of resolution.