Contractor Claims: What High Schoolers Need to Know

1. Payment disputes occur when the owner fails to pay the contractor on time, leading to cash flow issues for the contractor and its subcontractors.
2. Change-in-scope disputes arise when the contractor is required to perform work that was not originally included in the contract, and the owner fails to pay for that additional work.
3. Delay claims occur when a project takes longer than expected due to unforeseeable reasons beyond the contractor’s control, resulting in additional costs for the contractor.
4. Disruption claims are made when unforeseen factors at the project impact the contractor’s efficiency and productivity, resulting in additional costs for the contractor. – Disruption claims may arise for contractors if the owner changes the schedule of other contractors’ work, leading to increased job-site labor, equipment, and material costs.
– If a contractor is entitled to additional time to complete a project but the owner refuses, the contractor may have an acceleration claim, entitling them to more money for accelerating their work.
– Termination claims may occur if a contractor commits a material breach of contract, leading to the termination of the contract. Improper termination may entitle the contractor to additional labor, equipment, and material costs.

https://www.kirwinnorris.com/the-six-most-common-contractor-claims/