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What is the aim of a
disruption claim?
A disruption claim aims to show a decrease in
productivity, resulting in additional costs that
wouldn't have occurred without the disruptive
events the Employer causes.
The claim should reflect the difference between
achievable and actual productivity levels impacted
by disruption events the Employer is at fault for.
Original tender assumptions should not be
automatically regarded as the baseline for
productivity.
A disruption claim
must demonstrate
(as a minimum)
Events which entitle it to loss
and expense.
Identifying the events which
caused disruption.
That the disruption caused loss
and /or expense.
What to consider
While it is open to the claimant to determine
how best to provide a reasonable assessment
of the disruption caused, there are a handful of
issues likely to consider.
A baseline of what productivity levels would
have been achieved had the disruptive event
not occurred, by reference to cost and
resource allowed in the Contract.
Demonstrate that the allowances made in
the program and/or contract were
reasonable.
The recording and maintaining of
contemporaneous documents concerning
the disruptive events and the effect on
productivity. This is paramount. A claim's
credibility is severely affected if there is a lack
of contemporaneous evidence.
More to consider
Compliance with notice requirements under the
contract or, where there are no relevant notice
provisions, contemporaneously communicating
to the other party that a disruptive event
occurred, that it has disrupted productivity and
that consequently, additional costs will or have
been incurred. Claims made after the event lack
credibility.
Consideration of contractor risk events and
their impact – the credibility of the claim can
also be affected if this is ignored.
Disruption claims must be prepared in an event
specific basis detailing the cause and effect of
each event separately and to some extent
activity by activity, or period by period basis.
Whilst not fatal global claims are less credible.
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