How to Decide a Construction Claim is Worth Pursuing

construction-claim-workerWhen you’re performing construction claim preparation, one of the first questions to ask is whether the claim is worth following. All kinds of real disputes occur on a construction site, but not all of them lead to significant loss. Making the wrong decision on which claims to pursue can be just as costly as whatever losses you incurred in the first place.

Financial Loss

There is always the temptation to file a claim, but there may not be a major potential to recoup what you’ve lost. Say for example that a shipment of steel arrives, and a structural steel expert is hired to evaluate that steel and make sure it’s ready for use in the project. If that expert doesn’t show, or appears late, you’ve lost production hours and money. That said, the steel expert has also lost money on this deal. If you pursue the claim, work will cease until this particular claim is solved. Since steel is integral to most construction projects, you may end up with a higher financial loss for filing the claim and losing the working time, than you would have with the late consultant.

Determining Responsibility

Construction advisory services can be quite useful in determining who is responsible for the job, and for that particular claim. This is important, because going after the wrong person can result in an unpaid claim. They can also help you determine whether the project owner or subcontractor was responsible for that particular piece of work.

They can also help you gather sufficient documentation to file your claim, because your claim won’t go far without proof of your losses and responsibilities during that timeframe.

Lyle Charles is a construction expert witness, consultant and mediator with more than 40 years in the industry. Mr. Charles works with companies of all sizes to help resolve claims quickly.