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Construction Claims Analysis

BlumShapiro has significant experience representing owners in the defense of construction claims. Our involvement in these claims has included the initial analysis and testing of the claimed components as described below, participation in informal negotiations with the contractor, participation in numerous mediations and testifying in arbitration as an expert witness.

Typically, we are involved in the claim shortly after the owner has received the claim submitted by the contractor. Our primary goal is to review the costs claimed by the contractor and verify these amounts through the contractor’s financial accounting system. The cost components claimed by the contractor differ depending on the nature of the claim. Listed below are a few examples of the different types of claims that we have been involved in, as well as a brief description of the work that we performed related to those claims:

Delay Claims

The costs associated with delay claims are time-dependent in nature. Examples of the most common delay related costs are extended field office overhead, extended home office overhead, idle equipment and escalation costs. Our main focus is to tie these costs into the contractor’s overall accounting system.

Inefficiency Claims

Inefficiency claims are brought forward to the owner by contractors because one or more claimed owner-caused events resulted in the contractor being less efficient than originally planned. Examples of this include significant additional extra work added to the project, improper permits obtained forcing the contractor to work in the winter, owner-directed acceleration and inadequate plans and design.

Differing Site Condition Claim

A differing site condition claim is brought against the owner in instances where the contractor encountered conditions in the field that were not originally anticipated.

Wrongful Termination and Loss of Business Claims

These claims relate to a contractor being terminated by the owner. In some cases, wrongful termination and loss of business claims can be intertwined. Examples of the types of cost claims related to the above mentioned include anticipated profit on the specific project, loss of bonding impact, loss of business and the overall value of the company (if out of business).

 

Advisors | Auditors | Consultants | CPAs – BlumShapiro is one of the premier government focused accounting firms in New England and a Top 100 CPA Firm in the U.S. Our professionals serve government agencies, cities, towns, municipalities and quasi-government organizations in Boston (MA), Hartford (CT), Providence (RI), Shelton (CT) and Quincy (MA) with audit, tax and business consulting services. We are members of the Government Finance Officers Association, Connecticut Conference of Municipalities, Connecticut Council of Small Towns and the Government Finance Officers Association of Rhode Island

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