5 Common Mistakes Leading to Construction Claims
Introduction :
In complex construction projects, claims aren't just a risk—they're often inevitable. Whether arising from scope creep, delays, or communication breakdowns, claims can disrupt project delivery, escalate costs, and damage stakeholder relationships.
This article presents five major pitfalls that frequently lead to claims in construction contracts, as well as practical recommendations to avoid them. The lessons below are based on principles taught in reference programs in Construction Law & Dispute Resolution, notably at King's College London, and are aligned with international contractual standards such as FIDIC and NEC.
1. Scope of work poorly defined
Why does this pose a problem:
An ambiguous or incomplete scope leads to divergent interpretations of contractual obligations. The contractor may consider certain tasks as included, while the client considers them as additional services, generating variation claims.
Concrete example:
A contractor begins foundation work assuming site cleanup is included. The client considers it a separate service. Result: delay and claim for additional payment.
How to avoid:
- Define the scope precisely and technically
- Use a WBS and detailed BOQ to avoid overlaps
- Explicitly include exclusions in tender documents
2. Late notification of delays and poor record keeping
Why does this pose a problem:
Most standard contracts (e.g., FIDIC Clause 20) require prompt notification of delay events. Failure to comply with notification deadlines often leads to the rejection of claims, even valid ones.
Concrete example:
Heavy rains blocked access to the site for 2 weeks, but the contractor notified the engineer 21 days later — beyond the contractual period of 14 days. The right to an extension of time is forfeited.
How to avoid:
- Set up a real-time construction log
- Train teams to immediately identify notifiable events
- Automate contract alerts using scheduling tools
3. Frequent design modifications without contractual control
Why does this pose a problem:
Informal changes lead to scope creep. Without formal management through Change Orders, disputes arise over costs and schedule impacts.
Concrete example:
An architect provides sketches to modify a facade without formal instructions. The contractor performs the work, claims costs, and the owner disputes the validity.
How to avoid:
- Strictly adhere to the change management procedures (e.g., FIDIC Clause 13)
- Issue all instructions in writing and approved by the Engineer/PM
- Maintain a change log with cost/timeline analysis
4. Lack of clarity in risk allocation
Why does this pose a problem:
Disputes arise when contracts do not clearly allocate risks (soil conditions, material inflation, etc.).
Concrete example:
The contractor encountered rock during earthworks, but the contract does not specify the management of geotechnical risks. The client refuses any compensation.
How to avoid:
- Use risk matrices in the pre-contractual phase
- Rely on benchmark geotechnical reports
- Allocate risks to the party best able to control or insure them
5. Communication failures among stakeholders
Why does this pose a problem:
A lack of alignment between stakeholders (contractor, client, consultants) quickly turns misunderstandings into claims, particularly in international or consortium projects.
Concrete example:
A joint venture partner applies local standards, while the client requires Eurocodes. Result: non-compliance and costly rework.
How to avoid:
- Organize regular multidisciplinary coordination meetings
- Define a clear and shared Project Execution Plan
- Establish a single point of contact for instructions and validations
Conclusion
Claims in construction are often a symptom of deeper failures in project management or contract administration.
By adopting a proactive approach—clear scope, rigorous change management, traceability, and communication—stakeholders can significantly reduce risks and maintain project performance.
For professionals and future experts in construction law and dispute resolution, mastering these fundamentals is essential. The ability to anticipate and manage claims is now a key skill for all stakeholders in a project's lifecycle.
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