IntroductionConstruction contracts usually contain notice-of-claim provisions. The contractor must, within a stated period of time, notify the project owner in writing of any occurrence which may give rise to a claim for additional compensation under the contract. The policy behind these requirements is sound. Owners should have the opportunity to respond to problems as promptly as possible while options are available and costs can be mitigated.
The contracts attempt amongst many other things to provide a frame work with in which to effectively manage the ever increasing pace and complexity of modern construction projects, where claims for delay and cost have become common place and almost anticipated from the onset.