Infrastructure projects can be both large and challenging, and their associated contracts can vary in complexity depending on the type of project and the sectors involved.
The degree to which a contract allows claims to be made reflects the allocation of risk in that contract. The intention of claims clauses in a contract is that they protect both parties to the contract and should reflect a balanced allocation of risk.
In general, the claims that arise under construction contracts can be grouped into issues relating to employer’s claims, such as negligent design and latent defects; contractor’s claims, such as claims for loss and expense; and whether variations to the work are in fact variations. There is also the effect of time and its considerable commercial implications to both the employer and contractor.