Construction claims often stall because the event, its contractual consequence and the amount sought are assembled in different places. A useful submission brings those elements together so the recipient can test them.
Explain the decision being requested
A claim should allow the recipient to make an assessment. State what is being requested: an adjustment to the price, an extension of time, payment of a particular cost or some combination of these. Identify the event and the contractual basis before asking the reader to work through the supporting material.
A substantiated contractual claim is different from a statutory payment claim. Check the payment procedures for Australia and New Zealand.
Define the event and assessment boundary
Define the event, affected work and period covered by the claim. State which consequences are included and which, if any, remain to be assessed. This prevents a submission from becoming an account of every difficulty encountered on the project.
For a claim about unavailable access, organise the material so the reviewer can follow the required access date, what was actually available, the response on site and the resulting assessment. Refer to the relevant records at each step. The arrangements for capturing those records are discussed in Construction Project Records: What to Record and Why.
Make the calculation capable of being checked
Show the quantities, rates, periods and allowances used. State whether the figures represent recorded expenditure, a contractual valuation or an estimate. These are different bases of assessment and should not be mixed without explanation.
Keep a reconciliation between the claim schedule and its supporting calculations. If a revised spreadsheet changes the amount, explain the movement. The recipient should not need to compare hundreds of cells to discover that a resource has been removed or a period extended.
Check for duplication with paid variations, other claims and costs already allowed elsewhere. Show relevant credits openly. An adjustment identified and explained by the claimant is easier to assess than one discovered during an argument over the total.
Deal with the difficult facts
If another event affected the same activity, address it. If a record contradicts the account, investigate the difference before issuing the claim. An explanation that depends on overlooking an inconvenient programme update will not become stronger through repetition.
Distinguish established facts from assumptions. Where an assumption is necessary, explain its basis and whether a different answer would materially change the assessment. This allows the parties to focus their enquiries on information that matters.
Organise the disagreement before the meeting
Ask the recipient to identify which parts are accepted and which remain disputed. A difference over the applicable rate requires different preparation from a denial that any change occurred. Put those issues on a short schedule with the parties’ positions and the information still needed.
For example, the parties may agree that equipment was retained for ten days but disagree about who directed it to remain and whether it was available for other work. Obtain the relevant instruction and utilisation records before assembling a larger bundle of unrelated project documents.
Issue a reviewable submission
Issue the narrative, calculation and supporting documents as a controlled submission. Use a clear index and references that lead to the relevant page or entry, rather than attaching an entire project folder. Retain the version issued and identify changes in subsequent revisions.
Ask a colleague unfamiliar with the event to review it before issue. Can they follow the entitlement, find the evidence and reproduce the calculation? Address their questions while the project team is available. Formal settlement wording and the close-out of the overall account are dealt with in Final Accounts: Closing the Commercial Position.
