The Act provides that specific information must be provided in order for the claim to be valid:
1. Include Form 1 information (this is found within the Construction Contract Regulations 2003, a link is provided on our resources page).
2. be in writing; and
3. contain sufficient details to identify the construction contract to which the payment relates;
4. identify the construction work and the relevant period to which the payment relates;
5. state a claimed amount and the due date for payment;
6. indicate the manner in which the payee calculated the claimed amount;
7. state that it is made under the Act (CCA 2002)
Claim is a word used to describe ‘application for payment’.
Construction industry claims are regulated by the contract, and the Construction Contracts Act 2002.
An important distinction to make is the difference between a claim and an invoice.
Often invoices are sent when a party seeks payment. This is fine but if the recipient of the invoice simply does not pay the invoice then what next?. The answer is that you may not be able to rely on the protections provided by the CCA 2002.
Claims are not always monetary, although the majority of claims are.
Other types of claim may include claims for time. Often parties are obligated to complete their obligations or achieve milestones of completion in accordance with an agreed programme or date(s).
If events occur which are outside of your control, for example if the other party prevents you from performing your obligations, then you will likely be entitled to claim that lost time. The effect is that you are not be held liable if you do not complete the obligation by the earlier required date.
Extension of time claims are often complex and require specific methods of expertise when demonstrating the cause and effect of delays.
Similar claims exist where a party wants to pay to have the other party perform its obligations quicker. In these situations the programme may be accelerated and the accelerating party is compensated for its additional costs to make this happen. Options include nonproductive overtime, increased resources and re sequencing of the works.
Other events which may give rise to claim entitlements are legislation changes.
Covid 19 gave rise to several legislation changes during 2020. These may give rise to variation claims pursuant to the terms of your construction contract.
It depends on the claim.
Construction contracts often include time bar terms which limit variation and payment claim submissions to within reasonably short periods of time. This may impact your ability to claim a variation to contract unless you act quickly.
Other types of claim are determined by legislation i.e. the Limitations Act 2010 sets out that a claim may not be brought after 6 years ‘after the date of the act or omission on which the claim is based’, alongside other stipulations and clarifications. The statutory period for claims regarding deeds are different to those of other forms of contract.
We can advise you if you have a legitimate claim.
We can do this by assessing your information and contract. If you do not have a written contract you may still have entitlement, contact us in this instance.
We can advise you of any incorrect basis for contractual or calculations regarding your claim. We can also review the reasons for rejection of your claim and quickly advise you if the rejection is valid or not.
If you do not yet have a claim assembled but feel you have entitlements then we can confirm this for you and produce the claim accordingly.
We can assist you confidentially or can submit the claim and provide subsequent claim negotiation services to meet your needs.
Feel free to get in touch for a no obligation chat with a senior advisor.