Construction Claims and Variations
Expert-defined terms from the Postgraduate Certificate in Construction Law and Arbitration course at LearnUNI. Free to read, free to share, paired with a globally recognised certification pathway.
Construction Claims and Variations Glossary #
Construction Claims and Variations Glossary
1 #
Acceleration
Accelerating a construction project refers to the process of completing the work… #
This may involve increasing resources, manpower, or working hours to meet deadlines.
2 #
Adjudication
Adjudication is a dispute resolution process commonly used in construction contr… #
It involves appointing a neutral third party, known as an adjudicator, to make a binding decision on a dispute between parties.
3 #
Arbitration
Arbitration is a formal dispute resolution method where parties present their ca… #
It is often used in construction contracts as an alternative to litigation.
4 #
Change Order
A change order, also known as a variation order, is a written amendment to the c… #
It is used to document any changes made during the course of the project.
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Claim
In construction, a claim is a demand by one party for compensation or relief due… #
Claims can arise from various sources, including changes in scope, delays, or unforeseen circumstances.
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Concurrent Delay
Concurrent delay occurs when two or more delay events happen at the same time, i… #
It can complicate delay analysis and apportioning responsibility for the delays between parties.
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Constructive Acceleration
Constructive acceleration happens when a contractor is entitled to an extension… #
The contractor may be entitled to additional compensation for the acceleration.
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Counterclaim
A counterclaim is a claim made by the defendant in response to the claimant's in… #
In construction disputes, parties may file counterclaims to seek compensation or other remedies against the claimant.
9 #
Delay Damages
Delay damages, also known as liquidated damages, are predetermined amounts of mo… #
These damages are typically specified in the construction contract.
10 #
Disruption
Disruption in construction refers to any event that causes inefficiencies, hindr… #
It can lead to increased costs, delays, and disputes between parties.
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EOT (Extension of Time)
An extension of time (EOT) is a formal adjustment to the project schedule to acc… #
EOTs allow contractors additional time to complete the work without facing penalties for late completion.
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FIDIC (International Federation of Consulting Engineers)
The FIDIC is a globally recognized organization that produces standard forms of… #
FIDIC contracts are widely used in international construction projects and provide a framework for managing risks and disputes.
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Force Majeure
Force majeure refers to unforeseeable events or circumstances that are beyond th… #
Force majeure clauses in contracts may excuse parties from liability in such situations.
14 #
Liquidated Damages
Liquidated damages are predetermined amounts of money specified in the contract… #
These damages serve as compensation for the non-breaching party.
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Mediation
Mediation is a voluntary and informal dispute resolution process where a neutral… #
It is often used in construction disputes to facilitate communication and negotiation.
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Notice of Claim
A notice of claim is a formal written communication sent by one party to another… #
It is a crucial document in construction contracts as it triggers the contractual mechanisms for resolving disputes.
17 #
Omission
An omission in construction refers to work that was originally included in the c… #
Omissions may arise due to design changes, cost-saving measures, or other reasons and can impact the project's scope and cost.
18 #
Quantum Meruit
Quantum meruit is a legal term that translates to "as much as he deserved #
" It refers to a claim for a reasonable sum of money based on the value of the work performed or services rendered, often used when there is no formal contract in place.
19 #
Retention
Retention is a common practice in construction contracts where a specified perce… #
Retention is usually released upon completion of the project.
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Termination for Convenience
Termination for convenience allows one party to end the contract without breachi… #
This clause is often included in construction contracts to provide flexibility in terminating the agreement.
21 #
Variation
A variation, also known as a change order, is a modification to the original sco… #
Variations can be initiated by either party and must be documented in writing to avoid disputes.
22 #
Withholding Notice
A withholding notice is a formal communication from one party to another indicat… #
It serves as a warning before further actions are taken.
23. Zero #
Cost Variation
A zero #
cost variation occurs when a change in the scope of work does not result in any additional cost to the contractor. Zero-cost variations are often minor changes that can be accommodated within the original contract sum without affecting the overall project budget.