There are professionals who seek advice on interim claims. It is a topic that often appears when it comes to construction claims. This is why we will now read about it today. This post will also feature practical advice dealing on such matters.
The rules and principles pertain to various forms of construction contracts. The 1999 FIDIC contracts definition will be used to help understand the issue:
Sub-Clause 20.1 (Contractor’s Claims) obliges the Contractor to submit a completely detailed claim with supporting evidence and particulars. It should be submitted within a period of 42 days. Else, the event or the circumstance, due to which such a claim is rising. However, at times, no one may be able to ascertain the final effects of a claim event within the 42-day period.
Sub-Clause 20.1 (Contractor’s Claims) deals with the following eventualities:
- The fully detailed claim shall be considered as an interim claim.
- The contractor shall send further interim claims at monthly intervals, giving the accumulated delay and/or the amount claimed, and such further particulars which the engineer might require on reasonable basis, and,
- The contractor shall send a final claim within a period of 28 days after the end of the effects which result from the event or circumstance, or within such other period which may be proposed by the contractor and approved by the Engineer.
As a consequence, if neither the contractor, nor the engineer, or another involved party, cannot ascertain the final effects of a claim, the contractor must submit an interim claim within a period of 42 days. The affected party must continue submitting monthly interim claims unless they find the final effects.
Each interim claim must be based on the best information available at that time. Each update must be based on additional or more accurate information as it becomes available. The contractor must submit a final claim within 28 days after the effects have ended.
This procedure ensures that both the engineer and employer are abreast with the latest information. They will have access to the latest time and cost estimates. This helps them make sure they take the best possible action.
What should be part of a claim?
In practical terms there are three options when considering the kind of information present. Hence, the interim and final claims should contain the following:
- The first interim claim will contain the project details, the details of the cause of the claim, a demonstration of contractual entitlement, the latest available information along with an interim calculation of the effect in terms of either time or payment or both.
- Subsequent interim claims and final claims will present information that subsequently became available. It must include revised time and payment calculations.
- As mentioned in the aforementioned points, the final claim will consolidate everything into a stand-alone document. This document will contain the complete particulars of the claim.
- Each claim submission will contain everything related to the matter that is available at the time of submission. Each claim will tell the whole story to date.
There are some key points for effective claims that
dispute avoidance professions repeat each time. First, the job of the reviewer should be made as simple and seamless as possible. Secondly, that a claim must comprise a stand-alone document. This enables the respondent to make a completely reasonable response based on proper reasoning.
Hence, when considering the aforementioned advice, it is clear the last option is the best one.
Conclusion
Viewing these facts practically, the man-hours to achieve the best and most professional submissions will be about the same as the easy options. Thus, when readying the interim claim (on behalf of the contractor clients), top consultancy practice experts always treat each submission as a stand-alone individual document.
Advice of most experts in this matter is that parties involved should do the same. A top
quantum expert would rather prepare the interim claim as an individual document to keep everything safe.
