What to consider when preparing a disruption claim
A disruption claim aims to show a decrease in productivity, resulting in additional costs that wouldn't have occurred without the disruptive events the Employer causes.
The claim should reflect the difference between achievable and actual productivity levels impacted by disruption events the Employer is at fault for. Original tender assumptions should not be automatically regarded as the baseline for productivity.
As a minimum you need to demonstrate in a disruption claim the following:
1. Events which entitle it to loss and expense.
2. Identifying the events which caused disruption; and
3. That the disruption caused loss and /or expense.
Whilst there is no set way to prepare a disruption claim and it is open to the claimant to determine how best to provide a reasonable assessment of the disruption caused, the following issues should be considered:
A baseline of what productivity levels would have been achieved had the disruptive event not occurred, by reference to cost and resource allowed in the Contract.
Demonstrate that the allowances made in the program and/or contract were reasonable
The recording and maintaining of contemporaneous documents concerning the disruptive events and the effect on productivity. This is paramount. A claim's credibility is severely affected if there is a lack of contemporaneous evidence.
Compliance with notice requirements under the contract or, where there are no relevant notice provisions, contemporaneously communicating to the other party that a disruptive event occurred, that it has disrupted productivity and that consequently, additional costs will or have been incurred. Claims made after the event lack credibility;
Consideration of contractor risk events and their impact – the credibility of the claim can also be affected if this is ignored.
Disruption claims must be prepared in an event specific basis detailing the cause and effect of each event separately and to some extent activity by activity, or period by period basis. Whilst not fatal global claims are less credible.
Back to News and Insights
Related News and
Insights from Accura
