How to Make a Construction Claim

How to Make a Construction Claim – A Practical Guide

Making a construction claim is not about being adversarial – it is about recovering what you are contractually entitled to when events outside your control affect the cost or duration of your work. Whether you are a subcontractor claiming against a main contractor or a main contractor claiming against an employer, the principles are the same: establish entitlement, comply with notice requirements, maintain good records, and quantify the financial impact clearly.

Step 1: Identify Your Entitlement

Every construction claim must start with a clear contractual basis. Under NEC contracts, entitlement arises through compensation events listed in clause 60.1. Under FIDIC contracts, claims are governed by the specific claims clauses (typically Clause 20). Under JCT contracts, entitlement arises through the loss and expense provisions and relevant matters. You need to identify which specific contractual provision gives you the right to claim – without a contractual basis, you do not have a claim regardless of how unfair the situation feels.

Step 2: Comply with Notice Requirements

Almost every construction contract requires you to notify a claim within a specific timeframe. Under NEC contracts, the eight-week rule means you must notify a compensation event within eight weeks of becoming aware of it or lose your entitlement entirely. Under FIDIC contracts, the notice period is typically 28 days and the consequences of late notification can be equally severe. Even under JCT contracts, which are more forgiving on notice requirements, timely notification strengthens your position significantly.

The single biggest reason construction claims fail is late notification. Notify as soon as you become aware of the event – do not wait until you have fully assessed the impact.

Step 3: Keep Contemporaneous Records

Contemporaneous records are records made at the time the event occurs, rather than reconstructed afterwards. They are the foundation of every successful construction claim. Good records include daily diaries, progress photographs, correspondence, meeting minutes, resource allocation records, plant and material delivery records, programme updates and any other documentation that captures what was happening on site at the time.

The quality of your records will directly determine the strength of your claim. An adjudicator or tribunal presented with detailed contemporaneous records is far more likely to accept your version of events than one presented with a narrative written months after the fact.

Step 4: Quantify the Financial Impact

Once you have established entitlement and have the records to support your case, you need to quantify the financial impact. Under NEC contracts, compensation events are assessed based on the effect on Defined Cost plus the Fee. Under FIDIC and JCT, quantum is typically assessed on an actual cost or reasonable cost basis.

Common heads of claim include additional labour costs, additional plant and equipment costs, additional materials, prolongation of site overheads (preliminaries), subcontractor delay costs, and head office overheads. Each element must be clearly supported by records and calculation.

Step 5: Present the Claim Clearly

A well-presented construction claim is structured logically, separates entitlement from quantum, cross-references supporting documents clearly, and avoids unnecessary repetition or emotional language. The person assessing your claim – whether a project manager, commercial manager or adjudicator – should be able to follow the logic from event to entitlement to quantum without difficulty.

When to Bring in a Specialist

For small, straightforward claims you may be able to manage the process yourself. But for claims involving significant sums, complex delay analysis, disputed entitlement, or where the other party is being difficult, a specialist construction claims consultant will significantly improve your chances of a successful outcome and usually recovers far more than their fees.

How RKA Associates Can Help

RKA Associates prepare construction claims for subcontractors and contractors across the UK under NEC, FIDIC and JCT contracts. From initial assessment through claim preparation, negotiation and if necessary adjudication, we manage the entire process. Call +44 333 577 0303 or email office@rkaassociates.com.