Construction Claim
A formal request for more time or money when the contract does not cover a change.
Quick Answer
A construction claim is a formal demand by a contractor, subcontractor, or owner for additional compensation, time, or other relief under a construction contract. Claims typically arise from changed conditions, delays, design errors, or disputed scope. Contracts set notice deadlines and procedures that must be followed for a claim to remain valid.
The Full Picture
Claims arise when one party believes the contract entitles it to something the other has not agreed to provide, such as a price adjustment, a schedule extension, or a correction of the other side's performance. Common triggers include differing site conditions, owner-caused delays, defective or incomplete design documents, disputed scope, acceleration, and unresolved change order pricing.
Most contracts lay out a process: written notice within a stated number of days, substantiating information, a review by the architect or owner's representative, and escalation through negotiation, mediation, arbitration, or litigation. Failing to give notice on time is one of the most frequent reasons claims are weakened or denied, so contemporaneous documentation such as daily reports, correspondence, photos, and schedules is central.
Claims are different from routine change orders. A change order is an agreed modification, while a claim exists when the parties disagree on entitlement or amount. Many disputes are settled during the project, but some continue after closeout.
Preconstruction decisions shape how many claims appear later. Incomplete bid scopes, unclear exclusions, unlevel subcontractor proposals, and missed document conflicts tend to resurface as disputes over who was supposed to include what. Teams that clarify scope, document assumptions, and read contract risk provisions before award reduce the odds of entering a claim situation, although they never eliminate it. Legal advice is appropriate for specific claims, since rules differ by contract and state.
Real Examples
Common Misconceptions
People assume: A claim is the same as a lawsuit.
Actually: A claim is a formal contractual request for relief. Most are handled through the contract's notice and dispute process, and only some escalate to arbitration or litigation.
People assume: Late notice is a minor technicality.
Actually: Many contracts make timely written notice a condition of recovery, so missing the deadline can weaken or eliminate an otherwise valid claim.
Frequently Asked Questions
What are common types of construction claims?
Differing site conditions, delay and disruption, change and scope disputes, defective design documents, acceleration, and payment disputes. Each type has its own evidence and notice considerations.
How is a claim different from a change order?
A change order is an agreed modification to the contract. A claim is made when the parties have not agreed on entitlement or price, and it follows the dispute process in the contract.
How long do I have to file a claim?
The contract sets the notice deadlines, which are often short, such as a number of days after the event. Statutes of limitation and state laws may also apply, so check the contract and consult counsel.
What documentation supports a claim?
Daily reports, schedules, correspondence, photos, RFIs, change directives, and cost records created at the time of the event. Contemporaneous records are generally the most persuasive.
How can claims be reduced in preconstruction?
By clarifying scope, leveling bids, documenting assumptions and exclusions, resolving document conflicts through RFIs before bid, and understanding the contract's risk allocation.