{"id":890485,"date":"2016-08-02T11:26:54","date_gmt":"2016-08-02T17:26:54","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=890485"},"modified":"2016-08-02T11:26:54","modified_gmt":"2016-08-02T17:26:54","slug":"the-anatomy-of-a-construction-dispute-the-claim","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/","title":{"rendered":"The Anatomy of a Construction Dispute- The Claim"},"content":{"rendered":"<p>Christopher G. Hill | <a href=\"http:\/\/constructionlawva.com\/anatomy-construction-dispute-claim\/\" target=\"_blank\">Construction Law Musings<\/a><\/p>\n<p><img decoding=\"async\" class=\"alignleft\" src=\"http:\/\/constructionlawva.com\/wp-content\/uploads\/2015\/01\/cldb_1.jpg\" alt=\"English: Contractor-led design-build, architec...\" \/>A\u00a0 new year brings with it promise and challenges.\u00a0 The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them.\u00a0 The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.<\/p>\n<p>In order to assist with the potential challenges, this post will be the first in a series of \u201cmusings\u201d on the best way to handle a payment dispute arising from a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/does-your-construction-contract-provide-for-a-project-neutral-to-resolve-disputes\/\" target=\"_blank\">construction contract<\/a>.\u00a0 This week\u2019s post will discuss what the first steps should be once a payment dispute or claim arises.\u00a0 We\u2019ll assume that you, as a construction contractor, have taken\u00a0early advantage of the services of a construction lawyer and have\u00a0carefully reviewed your contract for issues before signing that contract.A\u00a0 new year brings with it promise and challenges.\u00a0 The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them.\u00a0 The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.<\/p>\n<p><span id=\"more-10471\"><\/span>So, how can a claim come up on the job site?\u00a0 Aside from just refusal of payment by either an Owner or General Contractor, one way is through the change order process.\u00a0 For instance, you, as a subcontractor, are ordered to perform certain additional work and while negotiating a written change order (you would of course get all changes in writing) you and the general contractor cannot agree on a price, or even on what the scope of the changed work should be.\u00a0 You then submit your claim in a timely fashion and move forward with the work as is likely contractually required.\u00a0 You submit your pay application for the claimed amount and either get no payment or less that what you believe to be full payment.<\/p>\n<p>What are the next steps?\u00a0 One, be sure to keep all documentation of your claimed amount, your notices, and any other correspondence in an organized fashion.\u00a0 Two, examine your contract to see what, if any, contractual ADR requirements such as <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/understanding-arbitration-clauses-in-contracts-litigation-mediation-arbitration-united-states\/\" target=\"_blank\">arbitration or mediation<\/a> are required prior to any further legal action.\u00a0 Three, call a construction attorney to see if he or she can find anything that you may have missed. By doing these things and acting accordingly, you will preserve your rights for if and when you need to go to court or arbitration to enforce your claim.<\/p>\n<p>Once you\u2019ve done these three things, and only with clear legal advice, consider the financial implications of continuing with the project.\u00a0 In most if not all instances, continuing is better than walking because from a legal perspective, you are almost always better off finishing your work and claiming that you weren\u2019t paid then walking and defending why you didn\u2019t finish.<\/p>\n<p>Know that if you walk from the job you will likely be subject to a claim from either the owner or general contractor and that you\u2019ll have to justify why you walked and didn\u2019t finish.\u00a0 As such, this is always a last resort, but in the rare instance (and I do mean very rare) that the financial burden of continuing caused by the lack of payment will be so great as to essentially close your company, it is a final option.\u00a0 I cannot be more clear than to say that this is the <em>very last resort <\/em>and that I do not recommend such action.<\/p>\n<p>Of course it\u2019s always a good idea to keep every step of construction well documented internally and by written confirmation of verbal instructions.<\/p>\n<p>By laying this ground work both before and after a claim arises, you will increase your chances of success should you need to take further actions to enforce your claim through the legal system.<\/p>\n<p>Next week I\u2019ll discuss some of the <a href=\"http:\/\/wp.me\/p2ztG6-3JED\" target=\"_blank\">methods of enforcing your payment claim<\/a> once you\u2019ve exhausted less formal means.<\/p>\n<p><a href=\"http:\/\/wp.me\/p2ztG6-3JEB\" target=\"_blank\">Stage 3 of the Construction Dispute.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Christopher G. Hill | Construction Law Musings A\u00a0 new year brings with it promise and challenges.\u00a0 The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them.\u00a0 The challenges come from the almost inevitable issues that can arise on a construction&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/\">Continue reading <span class=\"screen-reader-text\">The Anatomy of a Construction Dispute- The Claim<\/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":[41,164],"tags":[42,164,79],"class_list":["post-890485","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-construction-dispute","tag-arbitration-2","tag-construction-dispute","tag-mediation-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Anatomy of a Construction Dispute- The Claim - Advise &amp; Consult, Inc.<\/title>\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\/the-anatomy-of-a-construction-dispute-the-claim\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Anatomy of a Construction Dispute- The Claim - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Christopher G. Hill | Construction Law Musings A\u00a0 new year brings with it promise and challenges.\u00a0 The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them.\u00a0 The challenges come from the almost inevitable issues that can arise on a construction&hellip; Continue reading The Anatomy of a Construction Dispute- The Claim\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise &amp; Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-08-02T17:26:54+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/constructionlawva.com\/wp-content\/uploads\/2015\/01\/cldb_1.jpg\" \/>\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=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"The Anatomy of a Construction Dispute- The Claim\",\"datePublished\":\"2016-08-02T17:26:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/\"},\"wordCount\":726,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/constructionlawva.com\/wp-content\/uploads\/2015\/01\/cldb_1.jpg\",\"keywords\":[\"arbitration\",\"Construction Dispute\",\"mediation\"],\"articleSection\":[\"Arbitration\",\"Construction Dispute\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/the-anatomy-of-a-construction-dispute-the-claim\/\",\"name\":\"The Anatomy of a Construction Dispute- The Claim - Advise &amp; 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