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Evaluating Contract Claims, 3rd Edition




Evaluating Contract Claims, 3rd Edition

John Mullen, Peter Davison

ISBN: 978-1-118-91814-2 November 2019 Wiley-Blackwell 352 Pages

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An important guide to the quantification of contract claims in the construction industry, updated third edition

The substantially expanded third edition of Evaluating Contract Claims puts the spotlight on the quantification of claims in the construction industry after liability has been established, including by reference to the terms of several standard forms of contract in common use. The authors clearly demonstrate the potential alternative approaches to quantification, the processes, principles and standard of analysis required to produce acceptable claims for additional payment. The third edition covers a number of heads claims not considered in previous editions and offers an important guide for those working with building or engineering contracts.

Evaluating Contract Claims explains in detail how the base from which evaluation of additional payments may be established, the effect of changes on the programme of work and the sources of information for evaluation of additional payments. The book also contains information for evaluating the direct consequences of change in terms of the impact on unit rates, and evaluating of the time consequences of change in terms of prolongation, disruption, acceleration and more. This important book:

  • Concentrates on the quantification of contract claims after liability has been established
  • Offers a guide that is appropriate for any form of contract
  • Considers the potential alternative approaches to quantification of different heads of claim
  • Contains the principles and methods that should be reflected in the evaluation of claim quantum
  • Includes the standard of substantiation which may be required
  • Presents information that is equally applicable in both building and engineering disputes
  • Is substantially expanded from its previous editions

Written for construction and engineering contract administrators, project managers, quantity surveyors and contract consultants, Evaluating Contract Claims offers a revised third edition to the essential guide for quantifying claims in the construction industry once liability has been established.



1 Introduction

1.1 The legal basis

1.2 The standard of substantiation

1.3 Risks

1.4 Sources of change

1.5 Summary

2 Establishing the Base

2.1 Planned change

2.2 Unplanned change

2.3 Programmes and method statements

2.4 Summary

3 Effect of Change on Programmes of Work

3.1 Use of programmes

3.2 Use of as built programmes

3.3 Change without overall prolongation

3.4 Prolongation of the works

3.5 Analysis of time and delay

3.6 Summary

4 Sources of Financial Information for Evaluation

4.1 The contract provisions

4.2 Tender documents and information

4.3 Tender calculations and assumptions

4.4 Cost records

4.5 Accounting information

4.6 External information

4.7 Summary

5 Evaluation of the Direct Consequences of Change

5.1 Unit rates and prices or actual costs? 

5.2 Unit rates and prices 

5.3 The valuation ‘fences’

5.4 Inclusion of preliminaries and general items

5.5 Percentage adjustments 

5.6 Valuation using daywork provisions

5.7 Use of actual costs

5.8 Unit costs

5.9 Subcontractor and supplier costs

5.10 Valuation of omissions

5.11 Add and omit variations

5.12 Quantum meruit

5.13 Valuation in advance

5.14 Requirements for notices

5.15 Summary

6 Evaluation of the Time Consequences of Change

6.1 Introduction 

6.2 Prolongation

6.3 Liquidated rates for delay damages

6.4 Disruption

6.5 Acceleration 

6.6 Global claims and similar terms

6.7 Subcontractor costs

6.8 Off-site overhead and profit

6.9 Interest and finance charges

6.10 Duplication of recoveries

6.11 Summary

7 Termination Claims

7.1 Introduction

7.2 Termination under standard forms

7.3 Claims for the contractor’s lawful termination

7.4 Claims for the employer’s lawful termination

7.5 Claims for the employer’s unlawful termination

7.6 Claims for the contractor’s unlawful termination

7.7 Summary

8 Other Sources of Claims

8.1 Letters of intent

8.2 Bonds

8.3 Fluctuations in costs

8.4 Suspension of work

8.5 Incomplete and/or defective work

8.6 Omitted work

8.7 Post-Handover costs

8.8 The costs of preparing a claim

8.9 Errors, omissions and contradictions

8.10 Summary

9 Minimising the Consequences of Change

9.1 Introduction

9.2 Contract preparation

9.3 Alliance, partnering and framework contracts

9.4 Early warning systems

9.5 The claims industry

9.6 Summary


A Example of financial accounts

B Example of management accounts

Table of Cases