Claim Quantification

Written by Lyle Charles

Claim quantification involves qualifying a claim to understand compensation, the extension to the contract or another milestone date. It is important to speak to an expert in the area concerned, since most claimants will inflate the claim to ensure that there is room for bargaining, for example, if you have a steel related claim, it is advisable to speak to a steel fabrication expert for advice and guidance. Here are some areas that need consideration when looking at claim quantification;

Quantity measurement – Calculate the actual quantities of the claim item/work. Look at the agreement, if a BOQ is involved.

Cost estimation – Look at activity base costing (ABC) of the resources involved. To analyze this look at the cost records or prepare an estimate using current applicable rates.

Contract law precedents – Research other cases that support your claim to cite these situations in complex claims where the contract does not provide a resolution. Similar cases will provide information on how the claim is evaluated.

Schedule analysis – Compare the “planned” schedule and the “built” schedule when requesting for an extension. It is important here to invest in schedule analysis software that can make this process less complicated. The most important aspect of this analysis is to understand what affected the project’s critical path.

The business history – Consider the business history of the party and how they have approached such claims in the past.

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Lyle Charles offers construction consultant services for commercial construction projects across the United States.