Construction Law/Global Claims

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Question
HEllo Femi,

Greetings,

What is Global Claims? When this Claim effective?Can you guide me on this with clear example.

Regards

Reggie

Answer
Dear Reggie,

Greetings.

Really, i see people use this terms occasionally and i take it as a term derived from the English word "global" which is adapted to claims to mean "whole", "general", "complete" or "entire". Aside from the fact that it was mentioned in the SCL Protocol, I believe, global claims or rather "whole cost claim" or "total cost claim" tends to portray that, series of events may have given rise to several cost incurred by a party usually, the contractor and while it is required in normal claims for these incurred costs, there should be a complete substantiation and proof of "cause and effect" that translate to the determination of the actual cost incurred which would then be granted as the cost claim to be compensated. But in global claims, there may be complex situation on the site, or there may be so many instructions or events that led to these incurred costs most of which either were not pro[properly documented or were conflicting as "one instruction may say - do this, few days, another may be issued to say - do another and another issued to cancel all.... in these kind of scenario, it may have been impracticable to put together good documentation and then, the claim seeker would seek compensation on the basis of "global claim" a claim similar to "open book" claims sort of, where the cost of the contractor (total cost expended) is then established and then, the original contract sum + any known variations are subtracted from it and then, the balance represent amount payable on global claims that may have been incurred by the contractor.

At times, it could happen regarding compensation for time delays or disruptions, where there are so many events happening at same time with lots of activities that could not be analysed diligently. In such cases, there may not be need to generate proper plotting on primavera to confirm delays and time impacts and at such instance, you go for global claim or where the contractor intends to accelerate the works with no basis of establishing such compensation.

My advise would be that, good and proper documentation and systematic communication procedure should be maintained while the project is on so that, you can always get enough information to determine claims on the basis of "cause and effect". It is economical.

Hope this clears your doubts?

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Femi Alofe

Expertise

I can answer all questions relating to the followings: 1. Contract Administration - variations, contract clauses interpretation, all post contract procedures, valuations and certificates questions, extension of time issues and prolongation cost matters. 2. Contract Practice - Any questions regarding forms of contract like JCT, FIDIC & other Bespoke forms. 3. Quantification, measurements and Estimating questions 4. Contracts and construction law questions and dispute resolutions problems. 5. All FIDIC Conditions of contracts

Experience

Out of my 24 years experience in construction industry, i have the following specific experience: 1. Contract Administration - 15 years in contract administration with over 10yrs in Managerial positions covering africa and the middleeast. 2. Contract Practice - 15 years experience with over 10yrs in Managerial and expert positions covering africa, north america and the middleeast. 3. All pre-contract procedures, Tendering, Quantification, measurements and Estimating questions - 20 years experience. 4. Contracts and construction law questions and dispute resolutions problems - 15 years experience with over 10yrs in Managerial and expert positions and 5 years expert witness and active practice in arbitration proceedings covering africa and the middleeast.

Organizations
1. FAIQS - Fellow, Australian Institute of Quantity Surveyors, Australia 2. FRICS - Fellow, Royal Institution of Chartered Surveyors, UK 3. CCP - Certified Cost Professional AACEI, USA 4. PQS - CIQS, CANADA 5. ACIArb. - CIArb, UK 6. MNIQS - NIQS, NIGERIA 7. RQS - QSRBN, NIGERIA

Publications
1. AACEI RP on Estimating, 2010

Education/Credentials
1. B.Tech (QS) 2. RICS professional course, CEM - UK 3. MSc , UK NARIC 4. Professional Doctorate ( to commence 2016)

Past/Present Clients
1. Larsen & Toubro Ltd, Dubai UAE 2. Larsen & Toubro (oman) LLC 3. Archi + Web consortium, Abuja Nigeria 4. George Dike & Associates, Minna Nigeria 5. Public works Authority (Ashghal), Doha Qatar

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