ABSTRACT

The term 'claim' is not one that is used by the JCT standard forms of contract, but general usage indicates it is a term relating to the request for additional payment by a contractor or sub-contractor for work executed beyond the normal provisions of the contract in such a way that the normal provisions do not provide adequate reimbursement. An ex-gratia claim is not based on a legal obligation to pay, but on an appeal to fairness, morality or longer-term cooperation. The claim also depends on work being available at similar profit rates elsewhere. For fixed-price contracts, contractors take the risk of inflation increasing factor costs and will add an amount to cover the risk. Claims for interest are rarely pursued against an employer, unless the dispute is taken as far as the courts. Early in the project, site overheads might be extensive and disruption expensive; towards the end of the project, there be relatively few items remaining on site.