{"id":886609,"date":"2016-01-26T16:58:32","date_gmt":"2016-01-26T23:58:32","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=886609"},"modified":"2016-01-26T16:58:32","modified_gmt":"2016-01-26T23:58:32","slug":"contractor-stumbles-over-contracts-claim-procedures","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/","title":{"rendered":"Contractor Stumbles over Contract’s Claim Procedures"},"content":{"rendered":"

Robert J. Huber | Stinson Leonard Street LLP | January 19, 2016<\/p>\n

Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures<\/a> specified in their contracts.<\/p>\n

In\u00a0Contractors Edge, Inc. v. City of Mankato<\/em>, the Minnesota Court of Appeals rejected a contractor\u2019s claim for extra compensation because, despite providing the initial written notice, the contractor did not follow up with the amount of the claim and supporting data within the time frame required by the contract. The contract included the Engineers Joint Contract Documents Committee (EJCDC) Standard General Conditions, which are widely used on public works projects throughout the country. Those general conditions require the contractor to give an initial written notice of the \u201cgeneral nature\u201d of a claim within 30 days after the claim arises; and a second notice with the \u201camount or extent of the claim, with supporting data,\u201d within 60 days after the claim arises (unless the engineer allows additional time).<\/p>\n

The court stressed \u201cthe primary rule that failure to comply with written notice requirements results in contractor\u2019s inability to recover for extra work,\u201d adding that parties are \u201cfree to contract as to the type of notice that would be required.\u201d The court recognized that owners lose their right to insist upon close compliance with notice requirements if their earlier conduct was inconsistent with the intent to insist upon them. If earlier change orders had been issued without following the specified claim procedures<\/a>, for example, the contract\u2019s change-order provisions would not have been enforced. The court, however, did not find any evidence that previous change orders were handled differently than the contract required.<\/p>\n

Not all courts are as severe as Minnesota’s in enforcing written-notice provisions. In federal contracting, for example, late notice is fatal only if the owner loses the opportunity to monitor costs, consider less expensive alternatives, or otherwise address the claim. In these courts, the lack of timely notice will not bar the claim unless the owner is prejudiced by the delay, but only if the contract is silent on the effect of filing a late claim. Even in those states, however, the claim may be barred if that result is clearly required by the notice provision.<\/p>\n

The lesson of the\u00a0Contractors Edge<\/em>\u00a0decision is that a contractor puts a claim at risk by not following all of the steps in the contract’s specified claim procedures. The initial written notice is sometimes only the first of many steps that the contractor should closely follow. A contractor cannot always give notice of a claim, sit back, and assume the next move is the owner’s. When a claim arises, a contractor should study the steps required by the particular contract.<\/p>\n

Claim procedures<\/a> can vary from contract to contract. The EJCDC general conditions applied in the\u00a0Contractors Edge<\/em>\u00a0case illustrate potential pitfalls. Not only do they include the 60-day follow-up discussed above, but they include…<\/p>\n

To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Robert J. Huber | Stinson Leonard Street LLP | January 19, 2016 Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts. In\u00a0Contractors Edge, Inc. v. City of Mankato, the Minnesota Court of Appeals rejected a contractor\u2019s claim for extra compensation because, despite providing… Continue reading Contractor Stumbles over Contract’s Claim Procedures<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9,3],"tags":[9054,3],"class_list":["post-886609","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","category-insurance-claims","tag-claims-procedure","tag-insurance-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nContractor Stumbles over Contract's Claim Procedures - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Contractor Stumbles over Contract's Claim Procedures - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-26T23:58:32+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Contractor Stumbles over Contract’s Claim Procedures\",\"datePublished\":\"2016-01-26T23:58:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\"},\"wordCount\":496,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Claims Procedure\",\"Insurance Claims\"],\"articleSection\":[\"Construction Contracts\",\"Insurance Claims\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\",\"name\":\"Contractor Stumbles over Contract's Claim Procedures - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2016-01-26T23:58:32+00:00\",\"description\":\"Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Contractor Stumbles over Contract's Claim Procedures - Advise & Consult, Inc.","description":"Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/","og_locale":"en_US","og_type":"article","og_title":"Contractor Stumbles over Contract's Claim Procedures - Advise & Consult, Inc.","og_description":"Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2016-01-26T23:58:32+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Contractor Stumbles over Contract’s Claim Procedures","datePublished":"2016-01-26T23:58:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/"},"wordCount":496,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Claims Procedure","Insurance Claims"],"articleSection":["Construction Contracts","Insurance Claims"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/","name":"Contractor Stumbles over Contract's Claim Procedures - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2016-01-26T23:58:32+00:00","description":"Contractors have once again been reminded of the harsh consequences of failing to follow the claim procedures specified in their contracts","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/contractor-stumbles-over-contracts-claim-procedures\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3IE9","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/886609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=886609"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/886609\/revisions"}],"predecessor-version":[{"id":886610,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/886609\/revisions\/886610"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=886609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=886609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=886609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}