Construction claims costing for owners and contractors

Although the owner may have a legitimate claim against a contractor for breach of contract, calculation and proof of damages incurred by the owner is often a difficult task. Owners should be aware of the types of damages which may be recovered from contractors for delayed project completion, defective work, or abandonment of the project, and how to prove these damages. When a contractor has a legitimate construction claim against an owner, he must be aware of the wide variety of damages which he may have suffered in order to assure himself a chance of maximum monetary recovery. A claim may arise on account of a delay, disruption, or termination of the contractor's performance, and recoverable costs can be analysed under these three categories. In addition, the contractor must be careful to choose the best method of proving damages if he is to successfully prosecute his claim. Although the legal principles discussed in this article are drawn from the public and private sectors of the United States construction industry, they may be applied in arbitrations both in the United Slates and abroad.