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Introduction

While manufacturers in the manufacturing industry can set sales prices after determining costs, in a construction project, construction is commenced only after the contract sum is fixed. To prevail in the competition and be successfully awarded a contract, contractors must offer the lowest possible price. Such competition is especially fierce in international competitive biddings because the offered price must be the lowest in the world. This makes a successful bidder comparable to a gold medalist in the Olympics.

Under such circumstances, not only the introduction of the world's most advanced construction technologies but also the ability of construction administrators becomes a major determining factor in making profits from the construction project.

Generally, a quantity surveyor (QS) or claims consultant is appointed to handle claims to be made when loss of profits at the construction site is aggravating or construction is falling behind the predetermined schedule.

What is "making a claim"?

In this context, "making a claim" means billing or making a demand for payment based on the contracting party's entitlement under the agreement. Such claims are generally made by a main contractor to its client or a subcontractor to its main contractor.

How is a claim effected? The following requirements must be met in order to effect a claim.

  • The party making a claim shall establish its entitlement to the claim
  • Make an accurate evaluation of the claim

An affected party shall bear a burden of proof and is required to demonstrate the following details in the claim document, which is to be submitted to the other party for its consideration.

  • Statement of facts
  • Statement of reasons for the claim and demonstration of entitlement
  • Quantity and number of days
  • Price
Characteristics of our services The following are important points to be noted when submitting a claim document to the other party

  • Description of cause and effect in the claim document will have a significant impact on the other party's approach
  • The other party, who is the recipient of the claim, is very much interested in the amount being claimed and whether it is reasonable.

Generally, only expert engineers in charge of site work are capable of demonstrating such cause and effect mentioned above.

For example, in Southeast Asia, a number of unforeseeable phenomena, which even professional geologists are unable to predict, are occurring underground. Corals that had grown undersea in the earliest times were later brought ashore by movements of the earth's crust and transformed into limestone. These were subsequently affected by orogenic movements of volcanoes, the thermal action of which turned them into marble stone.

Such geologic structure is often beyond expectation and has had an enormous impact on excavating, tunneling and piling works in the region.

Our claim-making method focuses on analysis of the actual situation revealed by engineers in charge of site work, on the basis of which we prepare a technical report by applying a technical theory. We have adopted such an approach so that neither the Owner, Consulting Engineer nor Contractor would be offended or discredited and smooth settlement of claims can be achieved.

Preparation of Claim Documents

We dispatch our personnel to the client's premises and form a claim management team jointly with the client when preparing claim documents to be submitted to the Owner or Main Contractor in relation to site work for a civil engineering or construction project.

Our services include negotiating with the Owner or Engineer on claims and providing related consultation, attending claim-related meetings, providing explanation to the other party, responding to their questions, preparing supporting documents and assisting the client in negotiations.

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