An introduction to the claim evaluation process

Written by Lyle Charles

Once a claimant files a claim, requesting for the benefit, a construction claim is opened for investigation. In order to reduce damaged construction companies should know that it is important to present the claim correctly. This will often involve a team focusing on construction claim preparation. This stage will involve gathering facts and information relating to the claim. This information will then have to pass through a construction claim analysis to understand what information is available, needed and the legal theories behind the claim. Most construction companies hire construction claim experts to assist the company’s employees to conduct the analysis.

The entire process will then have to be evaluated to understand the amount or the extent of the additional costs that were incurred as a result of the breach. This evaluation will start with a price analysis. This will break down the primary cost elements into the following;

Labor

Material

Equipment

Subcontractors

Overheads and profit

The evaluation will look at the contract price compared to the bill of quantity. This will require all billing details plus budgets created by the construction company. It is important that this process is detailed, so that the conclusion can be accurate, providing the correct variance from the contract price. Therefore, it is vital that construction companies include a cost monitoring system and control mechanism in all their projects to make sure they are on track with projects specifications.

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Lyle Charles is the best place for you to visit if you are looking for a construction mediation.