Wednesday, May 12, 2010

Types of Construction Claims

If a cost have incurred and a claim is to be put forth, what we should plan out next is the claim strategy.

"Unless a variety of opinions are laid before us, we have no opportunity of selection, but are bound of necessity to adopt the particular view which may have been brought forward"

This is very much true indeed. We cannot claim unless we know on what options we do have. Claiming blindly and not knowing your entitlement may cause your claim to be chucked into the recycle bin.

Here are a few options we can put in mind in plotting our strategy. Commonly there are 3 types of claim for construction claims:

A Statutory Claim is only available where legislation has specifically provided the right to such a claim. In Malaysia, I believe a claim can be made only under the Contract Act. In the UK, they have the Contract Act, Unfair Contract Act and Security of Payment Act. And In Australia, there are only 3 that I can think of (know of):

A common law claim is a bit under the tricky lane, but here are some of the stuff I can think off after a few masters class at the Melbourne Uni Law School:

(click on the image to enlarge for reading)

Finally an Ex Gratia claim, more of a claim allowed due to kind gesture:

Putting forth a claim is more like being in a way (not a hostile one) and remember what Sun Tzu says:

"Know the enemy and know yourself; in a hundred battles you will never be in peril. When you are ignorant of the enemy, but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and yourself, you are certain in every battle to be in peril."