In construction projects, things rarely go exactly as planned. Delays happen, designs change, prices fluctuate, and unexpected site conditions arise. When these issues affect cost or time, construction claims become unavoidable.

Unfortunately, many professionals, especially young Quantity Surveyors, contractors, and site managers, either misunderstand claims or avoid them completely. This often leads to financial losses, disputes, and strained relationships on projects.

This article breaks down construction claims in simple terms, with special focus on Loss and Expense claims, variations, and other common claims encountered on building projects in Nigeria and similar markets.

What Is a Construction Claim?

A construction claim is a formal request by one party (usually the contractor) seeking additional payment, extension of time, or both, due to events that were not originally allowed for in the contract.

Claims arise when:

• The scope of work changes

• The contractor incurs extra cost

• The project duration is extended

• The contractor is prevented from working efficiently

Claims are not cheating or unethical. When properly justified, they are a legitimate contractual right.

Common Types of Construction Claims

1. Variation Claims

A variation is any change to the original scope of work after the contract has been signed.

Examples include:

• Change in design or drawings

• Increase or reduction in quantities

• Change in materials or specifications

• Additional work not originally included

How variation claims work:

• The change must be instructed (verbally or in writing)

• The contractor prices the change using contract rates or agreed new rates

• The approved amount is added to or deducted from the contract sum

Key point:
If work is changed without proper documentation, the contractor may struggle to recover the cost.

2. Loss and Expense Claims (Very Important)

Loss and Expense is one of the most misunderstood claims in construction.

A Loss and Expense claim is made when the contractor suffers financial loss due to delay or disruption caused by the employer or their representatives, not by the contractor.

Common Causes of Loss and Expense:

• Late issue of drawings

• Delayed instructions

• Late possession of site

• Suspension of works by the client

• Design changes causing disruption

• Employer’s nominated subcontractor delays

What Can Be Claimed?

Loss and Expense does not include profit on extra work. Instead, it covers actual losses, such as:

• Extended site overheads (site staff, security, power, water)

• Idle labor and plant

• Additional preliminaries

• Increased supervision costs

• Financing costs due to prolonged project duration

Key Difference:

• Variation claim = payment for extra work

• Loss & Expense claim = compensation for inefficiency and delay

3. Extension of Time (EOT) Claims

An Extension of Time claim is made when delays occur that are beyond the contractor’s control.

Common grounds include:

• Client variations

• Late drawings

• Exceptionally bad weather

• Force majeure events

• Delayed approvals

An EOT protects the contractor from:

• Liquidated damages

• Wrongful blame for delay

Important:
An EOT does not automatically give money. It only adjusts the completion date. Loss and Expense may be claimed separately.

4. Fluctuation Claims

In an unstable economy, fluctuation claims are becoming increasingly relevant.

A fluctuation claim arises due to changes in:

• Material prices

• Labor wages

• Fuel and transportation costs

These claims are only allowed if the contract provides for fluctuations. If not, the contractor bears the risk.

5. Disruption Claims

Disruption occurs when work is carried out less efficiently than planned, even if the project is not delayed.

Examples:

• Frequent changes to drawings

• Working out of sequence

• Stop-and-start instructions

• Congested site conditions caused by others

Disruption claims often form part of Loss and Expense.

Key Requirements for a Successful Construction Claim

Many claims fail not because they are invalid, but because they are poorly prepared.

To succeed, a claim must show:

1. Contractual Entitlement

The contract must allow the claim.

2. Cause

What event caused the loss or delay?

3. Effect

How did the event affect cost, time, or productivity?

4. Evidence

This is the most critical part.

Essential Records for Claims

Professionals must keep:

• Site diaries

• Daily labor records

• Plant usage logs

• Correspondence (emails, letters, WhatsApp instructions)

• Photographs

• Approved drawings and revisions

• Progress reports

• Programs and updates

No records = weak claim.

Common Mistakes Professionals Make with Claims

• Waiting too long before notifying the client

• Relying on verbal instructions only

• Mixing variation and loss & expense claims

• Claiming estimated figures without evidence

• Ignoring contract notice requirements

Why Construction Claims Matter

Construction claims:

• Protect contractors from financial loss

• Ensure fair risk allocation

• Encourage proper project administration

• Reduce disputes when handled professionally

For Quantity Surveyors, claims management is a core skill, not an optional one.

Final Thoughts from WeConstructHub

Construction claims are not about fighting clients—they are about protecting value and fairness on projects.

Whether you are a student, a site QS, a contractor, or a consultant, understanding claims like Loss and Expense, variations, and EOT will significantly improve your professional competence.

At WeConstructHub, we are committed to simplifying complex construction concepts and equipping professionals with practical knowledge they can apply on real projects.

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