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How Can Construction Claims Help Reduce Disputes in Construction?

EBR Times by EBR Times
October 24, 2022
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The construction industry is not as attractive as one may think. In cartoons construction sites did look beautiful and dreamy. In reality, they’re complicated, dangerous, risky and a nightmare.
Setbacks in the construction industry have put back a lot of projects behind schedule. Not only are schedules accelerated but also the cost of materials and payments of labor can go up by quite a margin.

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The frequency of setbacks in construction usually depends upon the delays that happened. They can be either due to financial issues or natural disasters. This is why construction companies need to be mindful of such things and be careful not to enter the conundrum of construction claims unprepared.

Condition of construction industry before the COVID-19 pandemic

Before the COVID-19 pandemic, the construction sector had a lot of growth. It even witnessed innovations especially in design, creation and utilization of Leadership in Energy Efficient Design (L.E.E.D) building concepts, architecture and engineering. COncrete and steel became leaner.
Architecture however became complex but materials for newer buildings were somewhat different than the mainstream materials. Cost cutting was present back then but in a different manner. Moreover, the usual kind of buildings also existed.

State of the construction industry post COVID-19 pandemic

Arguably the COVID-19 was one of mankind’s worst periods. Apart from fatalities, each industry across the world suffered badly. Construction was among the worst hit of industries. Projects were delayed for up to a year, numerous setbacks came from nowhere and numerous workers were not only infected but even died too.
When the world went into a lockdown, each and everything came to a standstill. Construction projects lay in dust, equipment was left to rust, there was no one to monitor the construction sites, and workers had fallen ill. Some died and some had health complications. A lot of unnecessary expenses landed on contractors.

Presence of disputes

Regardless of how good construction planning is, disagreements are always there. They always need to manage nicely. How effective are contractors, construction companies, architectes, lawyers and claims experts in this regard? It all boils down to the kind of service they provided and how well they handled all issues present.
Whenever disputes are present, it can result in the project going on hold, become abandoned or be resolved. If a project sits idle for long, it will put it further behind schedule.

Additionally, stoppages and delays add to the mix. It hence makes the project expensive to complete and puts unfair pressure on contractors. They incur all the costs of the project in an unfair manner. Moreover, delays and undelivered work become more expensive. Contractors will file for construction claims if things are not right.

How can the affected parties be ready for such events?

Expert advisory in construction claims is key to helping settle disputes. Checking the nature of disputes is also key so as to see which party has fair concerns and which one doesn’t. At times, construction companies put the brunt on contractors just to escape the financial conundrums.
Concerns of both sides will be heard. Bringing an acceptable resolution to help all parties and preventing the brunt from going on one party only avoids running the risk of having to put the project on hold for a long time. The purpose of all this is to ensure everything is done right.

Role of construction claims experts

Construction claims experts give a wide array of services and advisories for most construction projects. Apart from helping develop schedules and critical paths, they carry out risk analysis, check project schedules, see projections for the management of cash flows and provide regular updates each month.
Their services may seem to be unthankful but they work quite hard and are smart. They make sure the needs of stakeholders, clients, contractors, architects, and construction companies involved in construction projects are met adequately.

Conclusion

Construction as an industry is a complicated one. The COVID-19 pandemic brought in a complex series of issues and problems, sending the industry in a tailspin. Absenteeism among workers, idle equipment becoming expensive to maintain, ill health of employees, health scares and prolonged uncertainty threw everything in a conundrum.

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