Introduction - Building Contract Claims - page 1

Chapter 1
Introduction
1.1 Structure of the topic
The topic has been arranged in three parts:
Part I deals with general principles relating to time, liquidated damages and
financial claims of various kinds.
Part II looks at the relevant clauses in JCT contracts.
Part III looks at the equivalent clauses in other standard contracts and in
some standard sub-contracts.
1.2 Definitions
A dictionary definition of the word 'claim' is 'a demand for something
as due' 1 . For the purposes of this topic the term may be defined as the
assertion of a right, usually by the contractor, to an extension of the contract
period and/or to payment arising under the express or implied terms of a
building contract. In the construction industry the word 'claim' is com-
monly used to describe any application by the contractor for payment
which arises other than under the ordinary contract payment provisions.
In this broad sense, a claim includes an application for an ex gratia
payment, although this would not fall within the dictionary definition
given above as it is not the assertion of a right and it also includes requests
for additional payment as a result of variation instructions under the terms
of the contract. The word is also used to describe a contractor's application
for extension of time under a building contract. In one sense, claims for loss
and expense may be considered to be regulated provisions for the payment
of damages.
In fact, there are four types of claim that may be made by contractors
against employers if the broad definition is accepted. They are: contractual
claims, common law claims, quantum meruit claims and ex gratia claims. It
should not be forgotten that an employer may make claims against a
contractor for liquidated damages or for payment of a balance owing on
the final certificate or after determination of the contractor's employment by
the employer.