Global Claims And How To Defend

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Global Claims And How To Defend

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Question:
Discuss about the Global Claims And How To Defend Them.

Answer:

It is to be mentioned that this company in the recent times faced a lot of global claims by the contractors. It can be stated that Global claims are claims that arise in the construction industry between the parties to a contract. It is to be stated that global claims arise from the result of problems wich include conflicts, delays, insufficient information. Claims can also be made for liquidated damages, expense and losses and for extension of time. However the global claims that the company has faced are specifically relating to the critical delays.
It can be said that delays in a project can be critical as well as non critical. However whether a delay in the project is critical or non critical is decided by whether such delay affects the completion date of the project. It is to be mentioned that if tine is the most important element of the contract, any failure on the part of the contractor to finish the project within the proposed deadline will entitle the Employer to sue such contractor for liquidated damages and also have the option to rescind the contract. In case the delay happens in the project due to the fault of the employer, the contractor cannot be sued by the employer for damages by the application of the legal principle that a person cannot benefit from his own fault. In such cases where the employer is responsible for the delay the completion date of the project is extended to a reasonable time period or the contractor is awarded interim damages by the contract administrator. However, it is to be mentioned that the time extension application is inspected by the contract administrator and such application needs to contain relevant information about the reason of delay, day work sheets and progress reports. The contractor has the right to resolve the dispute by the dispute resolution process if he is not satisfied by the decision of the contract administrator. In the case Holme vs Guppy (1883) 3 M & W 387 the court had laid down a general rule related to the ‘ absolute completion dates’ of projects in which the employers are responsible for the delay in the projects.
Thus after analyzing the modern cases of the construction industry and the issues existing in such cases it can be said that contracts should have the provision of extending the date of completion if the cause of delay is attributed to the employer or unforeseen circumstances. Such a provision existing in the contract would be essential to limit the liability of the contractor.

Bibliography
Holme vs Guppy (1883) 3 M & W 387
Thomas, Reginald William, and Mark Wright. Construction contract claims. Palgrave Macmillan, 2016.
Burr, Andrew, ed. Delay and disruption in construction contracts. CRC Press, 2016.

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