Definitions of Contractual Claim's | FIDIC Red Book

What is Contractual Claim's in Construction

Claim is a common word you can use for all sort of claims such as Interim Payment Applications, final Payment Application, variation claim, claim for Extension of Time etc. As a contractor we can claim from the employer and also employer can claim from the contractor. Claim does not necessarily mean money. Can be time also. In simple, a claim can be for time, cost only, cost plus reasonable profit. Claim is also inclusive of Overhead & Profit.

Definitions of Contractual Claim's  FIDIC Red Book

Definitions In "FIDIC" 2017 2nd Edition Red Book

Sub-Clause No 1.1.6

“Claim means a request or assertion by one Party to the other Party for an entitlement or relief under any Clause of these Conditions or otherwise in connection with, or arising out of, the Contract or the execution of the Works."

In a contractual claim's Variation is another thing, Variation can occur only after the engineer giving his approval to proceed under the variation. But if contractor consider himself to be entitled for any EOT or any additional payment, he can submit a claim.

A claim is an entitlement of one party to demand for additional payment or extension of contract period, compensation for delays and damages from the other party under the relevant clauses given in the contract, which cannot be otherwise quantified from BOQ payment schedule provided in the contract.

Notice of Claim's

Notice is a very important document and notice basically be in writing.
The claiming Party shall give a Notice to the Engineer, describing the event or circumstance giving rise to the cost, loss, delay or extension of DNP for which the Claim is made as soon as practicable, and no later than 28 days after the claiming Party became aware, or should have become aware, of the event or circumstance (the “Notice of Claim” in these Conditions).

If the claiming Party fails to give a Notice of Claim within this period of 28 days, the claiming Party shall not be entitled to any additional payment, the Contract Price shall not be reduced (in the case of the Employer as the claiming Party), the Time for Completion (in the case of the Contractor as the claiming Party) or the DNP (in the case of the Employer as the claiming Party) shall not be extended, and the other Party shall be discharged from any liability in connection with the event or circumstance giving rise to the Claim.

Classification of Claim's

Contractual Claim's

Extra Contractual Claim's

Ex-gratia Claim's

Quantum Meruit

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