Are Invoices Enough?
Increasingly, contractors initial claims assessments are reduced to simply checking invoices received from subcontractors (to prove a cost has been incurred) with negotiation limited to the cost of the rates claimed.
But are invoices enough?
While this is prudent, it is not the only approach and misses three key points that should be demonstrated in construction claims.
It is the Contractors responsibility to demonstrate their entitlement to any additional monies.
The Contractor has to prove cause and effect
The Contractor should have contemporaneous records that support the claim (an invoice is generally not sufficient)
“While infrastructure booms in Australia and the Middle East, the “just get it built” mantra is no doubt at the forefront of project owners minds the payment and avoidance of claims is understandable but this is not sustainable.”
With a large majority of mega projects being funded by private money more scrutiny will be given to monies paid than before.
Consider investing in qualified resources
Investing in quantum experts and commercial managers will set you up for success long term and more likely than not cost a lot less than the claims received. It will also provide you with confidence to make informed decisions.
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