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Contracts & Legal

Claim

In Plain English

A formal demand by a contractor for more money or time based on events outside the original contract scope.

Definition

A claim is a demand by one party to a construction contract for additional compensation, time extension, or other relief under the contract. Claims typically arise from changed conditions, scope changes, owner-caused delays, or differing site conditions. Claims must be submitted within contractually specified time limits or they may be waived.

Example

The contractor filed a $350,000 claim for costs incurred when unexpected rock was encountered during excavation that was not indicated in the geotechnical report.

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