Recognizing a potential claim—whether related to delays, defective work, payment, or some other issue—often requires immediate attention to ensure that your rights are protected. This article provides a general overview of several practical considerations and proactive steps for contractors to take at the onset of a potential claim to better position themselves for positive resolution. While this is not an exhaustive thesis on claims management (or long-term litigation of claims), it is nonetheless intended to provide some practical guidance to follow during the initial phases of a potential project claim.

Read the Contract Thoroughly
As soon as a potential claim arises, read the contract. Then read it again. Understanding contractual obligations and rights is an important first step in preparing to address a potential claim. Construction contracts, such as those provided by ConsensusDocs, usually contain relevant provisions regarding claim preservation and dispute resolution/management. If these provisions are not properly adhered to, it can potentially prove fatal to successful resolution of a claim.