Once events occur that might lead to claims, both parties should immediately attempt resolution of the issues. Deferring claims normally results in larger claims eventually. But managing a claim on the front end may resolve the problems and avoid a potentially larger claim. To protect a claim, claimant must: recognize the claim; give appropriate notice; provide necessary documentation; and present the claim persuasively in order to sell it to the owner.
HOW TO SELL THE CLAIM
When a claim does arise, the contractor should literally sell the claim to the owner. The contractor will have to sell the claim to the owner by satisfying the owner on four elements:
- What the contractor contracted for
- What the owner did to the contractor or what happened
- Why the contractor is entitled to an extra