Types Of Construction Claims And How To Avoid Them

17 Jan Types Of Construction Claims And How To Avoid Them

Introduction to legal claims in the construction sector

Legal claims in the construction sector refer to any legal action taken by one party against another in regards to a construction project. These claims can arise for a variety of reasons, including breach of contract, delay in completion, or defective work. In the Middle East, legal claims in the construction sector are common due to the high demand for infrastructure projects and the competitive nature of the industry. It is important for both contractors and clients to understand the different types of legal claims that can occur in order to minimize the risk of disputes and ensure the successful completion of a project.

Breach of contract

One of the most common legal claims in the construction sector is a breach of contract. This occurs when one party fails to fulfill their obligations as outlined in the contract. In the Middle East, contracts in the construction sector are typically governed by the FIDIC (International Federation of Consulting Engineers) conditions of contract. The FIDIC conditions outline the rights and obligations of both the contractor and the client, as well as the procedures for resolving disputes.

There are several ways in which a breach of contract can occur in the construction sector. For example, a contractor may fail to complete the work within the specified time frame, or they may fail to meet the required quality standards. On the other hand, a client may fail to pay the contractor in a timely manner or may make changes to the project without the contractor’s consent.

If a breach of contract occurs, the affected party has the option to pursue legal action in order to seek damages or compensation. In the Middle East, construction disputes are typically resolved through arbitration or mediation, as opposed to going to court. This allows for a quicker resolution and can minimize the risk of costly litigation.

Delay in completion

Another common legal claim in the construction sector is a delay in completion. This occurs when a project is not completed within the agreed upon time frame, resulting in delays and potential cost overruns. There are several reasons why a delay in completion may occur, including unexpected site conditions, changes to the project scope, or issues with the contractor’s workforce.

In the Middle East, delays in completion are typically addressed through the use of time-related damages. These damages are designed to compensate the affected party for any losses they may have incurred as a result of the delay. For example, if a client is unable to occupy a building due to a delay in completion, they may be entitled to compensation for the additional costs they incur as a result.

Defective work

Another common legal claim in the construction sector is defective work. This refers to any work that does not meet the required standards or fails to function as intended. Defective work can occur for a variety of reasons, including poor quality materials, inadequate workmanship, or design errors.

In the Middle East, contractors are typically responsible for any defects that occur within the warranty period. The warranty period is typically specified in the contract and is designed to protect the client in case any defects arise after the project has been completed. If a defect is discovered within the warranty period, the contractor is typically responsible for repairing or replacing the defective work at no additional cost to the client.

If a defect is discovered outside of the warranty period, such as latent defects, the client may still have the option to pursue legal action in order to seek damages or compensation. However, it may be more difficult to prove that the defect was caused by the contractor’s work as opposed to owners modifications, damages etc..

Conclusion:

Legal claims in the construction sector are a common occurrence, and it is important for both contractors and clients to be aware of the potential risks and liabilities involved in a construction project. By understanding the different types of legal claims that can occur in the Middle East, you can protect your interests and avoid disputes.

If you want to speak with a legal specialist in the construction sector, the Qualtiaz team will be able to point you in the right direction. Simply click the link below.