Introduction :

1. Poorly Defined Scope of Work

Why it causes problems: An ambiguous or incomplete scope often leads to divergent interpretations of contractual obligations. Contractors may assume certain tasks are included, while the employer sees them as extras — triggering variation claims.

Real-world scenario: A contractor starts foundation work assuming site clearing is included. The employer, however, treats it as a separate billable item. The result? A delay and a claim for additional payment.

How to prevent it:

• Ensure the scope of work is defined in precise, technical terms.
• Use Work Breakdown Structures (WBS) and BOQ itemization to avoid overlap.
• Include explicit exclusions in tender documentation.

2. Inadequate Delay Notification and Record-Keeping

Why it causes problems: Most standard form contracts (e.g., FIDIC Clause 20) require timely notification of delay events. Failure to notify within the stipulated window often leads to rejection of claims — regardless of their merit.

Real-world scenario: Heavy rains delay site access for 2 weeks, but the contractor notifies the engineer 21 days later — breaching the 14-day notice period. The entitlement to an extension of time is lost.

How to prevent it:

• Implement a real-time site diary system.
• Train site managers to flag potential delay events immediately.
• Automate contractual deadline alerts via scheduling software.

3. Frequent Design Changes Without Contractual Change Control

Why it causes problems: Frequent or informal design changes lead to scope creep. When not managed through formal Variation Orders, they create disputes about compensation and liability for time impacts.

Real-world scenario: An architect provides hand-drawn sketches for a revised façade without going through a formal instruction. The contractor proceeds, later claims costs, and the employer disputes the validity.

How to prevent it:

• Adhere strictly to change management procedures (e.g., FIDIC Clause 13).
• All instructions should be issued in writing and authorized by the Engineer/PM.
• Keep a log of all changes with time and cost implications assessed in advance.

4. Lack of Clarity on Risk Allocation

Why it causes problems: Disputes often arise when contracts do not clearly assign responsibility for specific risks (e.g., unforeseen ground conditions, material price escalation).

Real-world scenario: A contractor encounters rock during excavation but the contract remains silent on subsurface risks. The employer refuses compensation, citing fixed-price terms.

How to prevent it:

• Use risk matrices in pre-contract negotiation to define ownership of key risks.
• Reference geotechnical baseline reports and include “Differing Site Conditions” clauses.
• Allocate risks to the party best positioned to control or insure against them.

5. Communication Gaps Between Stakeholders

Why it causes problems: Misalignment between project participants — contractor, client, consultants — can escalate misunderstandings into claims, especially in multinational or joint venture contexts.

Real-world scenario: A joint venture partner assumes that local standards apply, but the client expects full compliance with Eurocodes. Conflicting assumptions lead to non-compliant execution and costly rework.

How to prevent it:

• Conduct regular multidisciplinary coordination meetings.
• Develop a project execution plan that harmonizes expectations and standards.
• Establish a single point of communication for instructions and change approvals.

Final Thoughts

Construction claims are often symptomatic of deeper project management or contractual deficiencies. By focusing on proactive contract administration — from accurate scoping to disciplined change control — stakeholders can mitigate risk and maintain project momentum.

For professionals and students entering the field of construction law and dispute resolution, mastering these foundational principles is not optional — it’s essential. The ability to anticipate and manage claims is increasingly seen as a core skill, not just for legal advisors, but for all key actors in the project lifecycle.