ClaimMaster.ai’s Post

Your construction project scenario as a project owner might look like this: You engaged a contractor to build a structure. However, the delivered structure does not meet the contract specifications, and is plagued by irreparable defects. With arbitration as a means to settle disputes outlined in your contract, you are prepared to initiate proceedings against the contractor. Now, the pressing question is - what damages should you seek from the arbitral tribunal? To help, I have prepared a concise guide on "diminution in value" damages, specifically tailored for projects with irreversible defects. Feel free to read, like, and share your thoughts in the comment section. #construction #defects #constructionclaims #constructioncontracts #arbitration

Reducing Construction Disputes through Effective Claims Management - an academic article: https://buff.ly/49YVzfJ #ContructionClaims #ConstructionSector #ConstructionDisputes

Damage, Damages, and Liquidated Damages in Construction Contracts: Know the Difference! Damage: Physical harm to property or structures. For example, "The crane accident caused significant damage to the site." Damages: Monetary compensation for loss or injury. Think, "The client was awarded damages for the delayed project delivery." Liquidated Damages: Pre-agreed sums specified in a contract to cover losses from breaches, such as project delays. For instance, "The contract stipulated $1,000 per day in liquidated damages for late completion." Why Liquidated Damages Matter ·      Clarity: Set expectations and avoid disputes with predetermined amounts. ·      Incentive: Encourage timely project completion. ·      Simplicity: Avoid lengthy legal battles over actual losses. #constructioncontracts #contractmanagement #claimsmanagement #disputemanagement

🔍 Handling Construction Claims? Understanding the Law of Damages can help you get the full compensation you deserve. In my new video, I break down how this law works in construction projects and how it can protect your interests. Whether you’re a contractor, project manager, or involved in construction, this video will give you the insights you need to secure your claims. 📺 Watch now: Law of Damages in Construction: Ensuring Full Compensation for Project Claim #Construction #ProjectManagement #Claims #Compensation #delayanalysis #elcontrolwithyasserabouzeid

We have a few spots left! Contact me if you want further information. If you handle construction claims, this course will help your day to day claims handling! Learn from some of the best in the business who are passionate about construction claims.

Hudson's Formula: A Tool, Not a Replacement, in Construction Delay Claims: In a construction project experiencing a 42-month delay, the Supreme Court was tasked with determining whether Hudson's Formula constituted a reliable basis for awarding compensation for delayed work. This inquiry arose due to the absence of credible evidence substantiating the contractor's claim of lost profitability. The court ultimately held that Hudson's Formula should not serve as a substitute for presenting direct evidence of actual losses incurred. While formulas can be employed as tools for quantifying the extent to which a claim surpasses a formula-based estimation of loss, they are not a dependable primary means of establishing loss itself. #constructionlaw #constructionindustry #arbitration

📚 Exploring the Foundation of Risk of Cost Awards in Construction Contracts 🏗️ In the realm of Construction Contracts, the pursuit of a Risk of Cost award necessitates a robust understanding of the fundamental principle: the requirement for actual proof of damages. 📊 In my legal experience, establishing a compelling case for a Risk of Cost award mandates a meticulous presentation of verifiable evidence showcasing tangible and quantifiable damages incurred due to unforeseen risks. This evidence not only serves as the bedrock for the claim but also reinforces the legitimacy of the sought-after compensation. ⚖️ Construction contracts inherently involve an intricate interplay of variables, making it imperative to dissect each component contributing to the claimed damages. Rigorous documentation, backed by thorough analysis, becomes the linchpin in substantiating the nexus between the identified risks and the resultant financial impact. 📑💡 Moreover, a prudent approach involves aligning the claim with contractual provisions, applicable laws, and industry standards. A well-crafted argument, rooted in legal acumen, positions the claimant on solid ground while navigating the intricacies of risk allocation within the contractual framework. 🏛️💼 #ConstructionLaw #LegalInsights #RiskManagement #ContractualClaims #LegalDiscourse

The waiver of consequential damages is a common provision in construction contracts, influencing the rights and remedies available to parties involved. Consequential damages refer to indirect or special losses that result from a breach of contract but are not a direct consequence of the breach itself. While such waivers can benefit both parties, they also present certain advantages and disadvantages. One primary advantage of including a waiver of consequential damages is risk mitigation. By limiting potential liabilities, contractors can better manage their exposure to unforeseen events or disruptions that might lead to indirect losses. This clarity promotes a more predictable and stable contractual relationship between the parties. On the flip side, the disadvantage lies in the potential injustice to the non-breaching party. If a breach occurs, and the waiver of consequential damages is in place, the injured party may only recover direct losses, which might not fully compensate for the overall impact of the breach. This lack of comprehensive compensation could create an imbalance in the risk allocation between the parties. Ultimately, the decision to include a waiver of consequential damages in a construction contract requires careful consideration of the specific risks involved, the project's nature, and the overall negotiating power of the parties. Striking the right balance between protecting against potential losses and ensuring fairness is crucial for a successful contractual relationship in the construction industry. #construction #constructionlaw #constructionindustry #contracts #contractlaw #contractdrafting

Construction disputes can be complex. Simplify the resolution process with our strategic guide. Hit play to learn how to tackle disputes effectively! #construction #constructiondisputes #disputeresolution #constructionmanagement #contractortips

Don’t jump-the-gun on adjudication! Sometimes clients don’t truly appreciate how fast-paced adjudication can be. For instance, under the Construction Act, once an adjudicator is appointed, the claimant generally has 5 days to submit their claimant statement (including all supporting documentation). I recommend clients only commence an adjudication once they have all their material in a near final state. Otherwise, it’s a terrible strategy to commence an adjudication before you’re actually ready for it.