User:Sunil sbawane

Claims : Delay claims are common in construction contracts. Delays in project execution can be caused by both contractor as well as owner. When the delays are attributable to contractor, the owner levies liquidated damages which are as per agreed terms which are specified in agreement. On the other hand when the delays are caused by way of owner’s actions or defaults like delays in making available work fronts, supply of drawings/ materials, decisions etc., the contractor claims an equitable amount towards compensation for losses/extra expenditure because of time overruns. Such owner caused delays compel the contractor to work in over run period (extended time). By such prolonged presence on-site, it results in incurring additional prolongation costs not originally anticipated. As per legal position the contractor is entitled for compensation for such losses by way of prolongation costs as extra-contractual claims (not as an embedded contractual provision but by way of principles of law). But the issue of such claims and justification, quantification is complex and rather controversial in a sense. Herewith the principles on such claims, legal position are dealt in detail.