The nature of claims - managing the risks

A claim is commonly regarded as a four-letter word which draws the line in the sand between the contactor and the employer. This paper examines the nature of claims and the essential function they play in the construction industry in maintaining or restoring the balance of the risks assumed by the parties contractually. It looks at and compares various provisions of Fidic contracts and examines the importance of the choice of contract and how risks are apportioned between the parties and managed. It concludes that if employers and contractors have a proper appreciation of the nature of claims and the importance of the management thereof, the climate for the proper administration of the contract will have been established.