Legal Aspects of Construction Claims
Expert-defined terms from the Undergraduate Certificate in Construction Law and Contracts course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
Acceleration Clause #
A provision in a construction contract that allows the owner to demand that the contractor complete the work in a shorter period of time than originally specified, often with additional compensation to the contractor for the expedited work.
Adjusting Service #
A company that provides expert assistance in the preparation, negotiation, and settlement of construction claims.
Backcharge #
A charge made by the owner to the contractor for work that the owner believes the contractor should have performed but did not, or for work that was performed incorrectly or inadequately.
Claim #
A demand for payment or other relief based on a breach of contract, delay, disruption, or other event that has caused harm to one of the parties to a construction contract.
Concurrent Delay #
A situation where two or more delay events, one caused by the owner and one caused by the contractor, overlap in time, making it difficult to determine which delay caused the project completion date to be extended.
Construction Change Directive #
A written order issued by the owner to the contractor to make a change to the work, typically issued when the change is necessary for the owner's convenience or is required by law.
Constructive Acceleration #
A situation where the owner has not formally invoked an acceleration clause, but the contractor believes that the owner's actions or inactions have effectively forced the contractor to complete the work in a shorter period of time than originally specified.
Contract Time #
The period of time specified in the construction contract for the contractor to complete the work.
Cardinal Change #
A change to the work that is so significant that it fundamentally alters the nature of the contractor's obligations under the construction contract.
Change Order #
A written order issued by the owner to the contractor to make a change to the work, typically issued when the change is requested by the contractor or is the result of a mutual agreement between the owner and the contractor.
Critical Path #
The sequence of activities in a construction project that determines the shortest possible duration for completing the project.
Critical Path Method (CPM) #
A project management technique used to schedule and coordinate construction activities, identify the critical path, and determine the amount of time that each activity can be delayed without affecting the overall project completion date.
Delay Claim #
A claim for additional time or compensation based on a delay in the completion of the work caused by the owner, the contractor, or another party.
Design #
Build: A project delivery method in which the owner contracts with a single entity to provide both design and construction services for a construction project.
Differing Site Conditions #
A situation where the actual conditions encountered at the construction site differ materially from the conditions that were assumed or anticipated in the construction contract.
Directed Change #
A change to the work that is ordered by the owner, typically through a construction change directive or change order.
Disruption Claim #
A claim for additional compensation based on the disruption of the contractor's work caused by the owner, the contractor, or another party.
Entitlement #
The basis for a claim, typically based on a breach of contract, delay, disruption, or other event that has caused harm to one of the parties to a construction contract.
Excusable Delay #
A delay that is beyond the control of the contractor and is caused by factors such as weather, labor disputes, or unforeseeable circumstances.
Force Majeure #
A clause in a construction contract that excuses a party from performing its obligations due to unforeseeable circumstances beyond its control, such as natural disasters, war, or strikes.
Impact Analysis #
A study of the effects of a change or delay on the overall project schedule, cost, and performance.
cardinal change #
A change to the work that is so significant that it fundamentally alters the nature of the contractor's obligations under the construction contract.
labor productivity #
The amount of work completed by a worker or a group of workers in a given period of time.
liquidated damages #
A predetermined amount of damages that the contractor agrees to pay the owner for each day of delay in the completion of the work.
notice of claim #
A written notice from the contractor to the owner stating that a claim is being made and describing the basis for the claim.
offset #
A reduction in the amount of a claim made by the owner against the contractor, typically in the form of a credit for work already performed or materials already supplied.
prevailing party #
The party that wins a lawsuit or arbitration, typically entitled to recover its attorney's fees and costs from the losing party.
proof of claim #
A written document submitted by a contractor to the owner, typically as part of a construction claim, that sets forth the basis for the claim and the amount being sought.
quantum meruit #
A legal principle that allows a contractor to recover the value of work performed or materials supplied, even if there is no written contract or if the contract is void or unenforceable.
schedule delay analysis #
A method of analyzing the causes of a delay in the completion of a construction project and determining the responsible party and the amount of time lost due to the delay.
schedule of values #
A document that breaks down the construction contract into smaller, more manageable components, typically used to track progress and payments.
specific performance #
A legal remedy available in construction disputes that requires the breaching party to perform its obligations under the construction contract.
time extension #
An extension of the contract time granted to the contractor, typically in response to a delay claim.
unforeseeable circumstances #
Events or conditions that could not have been reasonably anticipated or provided for in the construction contract, such as weather, labor disputes, or unforeseeable site conditions.
waiver #
The voluntary relinquishment of a known right or claim, typically in the form of a written document signed by the party waiving the right or claim.