Master log of all claims by + against contractor / client — delay, cost overrun, scope, quality. Critical for proactive management before claims escalate to disputes.
Claim Log Summary: 12 claims raised. 7 by Contractor (₹8.5 cr + 60 days), 5 by Client (₹2 cr in LD). Settled: 5 (₹3.5 cr); 4 in negotiation; 3 escalated to DAB. Major: GFC delay claim (Contractor's, ₹4.5 cr, FIDIC 8.4); rejected NCRs (₹2 cr in LD reduction by Client).
Construction projects routinely generate claims — formal commercial demands by one party against another. Claims arise from: delays caused by counter-party, design defects, additional scope, force majeure, payment disputes, defective work, quality issues, regulatory changes.
Under Indian contracts (FIDIC, NHAI, MoRTH, CPWD), claims have strict procedural requirements: notification within specified days of the event, supporting documentation, formal correspondence, escalation if unresolved. Missing procedural deadlines = claim forfeited even if valid.
The Claim Log tracks every claim: type, value, status, age, supporting documents, action taken. Without this log, claims slip through procedural deadlines + are lost; settled claims aren't documented for closeout; project's true cost picture is unclear.
Common claim categories: 1. Time-related claims — extension of time (EOT), prolongation costs 2. Cost-related claims — additional scope, design changes, escalation 3. Quality claims — defective work, rework required 4. Payment claims — overdue RA bills, retention release 5. Force majeure claims — weather, strikes, pandemic, geological 6. Statutory claims — regulatory changes (GST, new laws) 7. Counter-party claims — sub-contractor / supplier disputes
Standard claim workflow: 1. Event identification → claim trigger identified 2. Initial notification → typically within 28 days (FIDIC) or 14 days (NHAI) 3. Particulars submission → detailed claim with documentation 4. Engineer determination → consultant's view 5. Negotiation → between parties 6. Escalation if unresolved → DAB (Dispute Adjudication Board) for FIDIC 7. Arbitration if DAB unsatisfactory → per contract arbitration clause 8. Court litigation if arbitration insufficient → final recourse
1. Late notification — claim valid but notification deadline missed; claim forfeited. 2. Inadequate documentation — claim raised but supporting documents insufficient; engineer rejects. 3. Multiple overlapping claims — same event raised as multiple claims; engineer dismisses for incoherence. 4. No clear basis — claim raises principles but doesn't tie to specific contract clauses. 5. No cost calculation — claim mentions general impact but doesn't quantify. 6. Time-bar not understood — Indian Limitation Act 1963 gives 3 years for contract claims; arbitration/litigation must commence within this. 7. Settlement undocumented — verbal settlement at meetings; no written record; later dispute. 8. Without prejudice in negotiations — admissions of liability made informally; later used against the party. 9. No legal review — DIY claims without legal review; procedurally weak; settled below value. 10. Cumulative claims not aggregated — many small claims individually; cumulatively significant; client / employer disputes.
Companion PMC formats: - Dispute Register (PMC-RSK-REG-005) — formal disputes - Change Order Register (PMC-RSK-REG-004) — scope changes - Force Majeure Tracker (PMC-RSK-LOG-004) - Contract Amendment Log (PMC-BIL-LOG-004) - RFI Review (PMC-MTG-MOM-012)
Legal framework: - Indian Contract Act 1872 — basic principles of contract law - Arbitration + Conciliation Act 1996 (amended 2019) — arbitration procedures - Limitation Act 1963 — 3-year limitation for contract claims - Specific Relief Act 1963 — for specific performance - FIDIC General Conditions Clauses 8 + 13 + 20 — time, variations, dispute resolution - NHAI / MoRTH / CPWD standard contracts — Indian government claim procedures