Dismantling a Contractor Claim Before Adjudication
A high-value delay and cost claim settled at 36% of the original demand, without adjudication.
The Claim
Optimum Resolution was appointed to evaluate and respond to a high-value Loss and Expense and Extension of Time claim on a large construction scheme. The contractor was seeking hundreds of thousands of pounds for delays it blamed on third-party approvals and statutory connections.
Our Analysis
We produced a comprehensive, independent report evaluating the contractor’s claim in full, covering programme impact, contract compliance, notice validity, and cost substantiation. Our forensic review uncovered serious weaknesses:
- The contractor had not issued valid or timely notices under Clauses 2.24 and 4.20 of the JCT Design and Build 2016 contract.
- There was no demonstrated impact on the critical path.
- The programme logic presented was inconsistent, revealing inefficiencies and periods of clear contractor delay.
- Claimed costs were unsupported by invoices, lacked breakdowns, and in many cases appeared inflated or duplicated.
Our report concluded that the true entitlement was no more than 23% of the amount claimed.
The response to our report
The contractor’s solicitors issued a detailed rebuttal. The points in dispute included the relationship between Loss and Expense and Extension of Time entitlements, the application of case law, and the evidence supporting the claim.
The response did not provide programming analysis, a critical path assessment or quantification.
Our Response
We responded on the contractual notices, programme data and causation relied upon in the claim, setting out our assessment of the contractual and technical position.
The Outcome
The matter was resolved without Adjudication. The contractor ultimately settled at just 36% of their original claim, higher than our recommended figure, but still saving the client hundreds of thousands of pounds and avoiding formal proceedings. The result preserved commercial relationships.
Optimum’s role
We prepared a report assessing the claim against the contract, programme and supporting cost records, and responded to the contractor’s rebuttal before the matter was settled without Adjudication.
