Construction Claims: Notice, Records, Cost and Schedule Impact

A cost overrun or missed milestone does not automatically establish a compensable claim. The contractor must identify a contractual basis for relief and support the connection between the event and the requested adjustment. Good project records make that analysis possible while the facts are still fresh.

Start with the contract and notice clause

Review the prime contract, general conditions, subcontracts, specifications, and incorporated documents. They may define claimable events, notice recipients, delivery method, time limits, required contents, and the process for a change order or claim. A field conversation or an RFI may not satisfy a formal notice clause. Give notice in the contract-required form and preserve proof of delivery; do not assume that the other party already knows about the issue.

Build the factual record

Record what happened, when it happened, who directed or observed it, and which work was affected. Preserve daily reports, photos, meeting minutes, RFIs, submittals, emails, delivery tickets, labor and equipment records, invoices, and schedule updates. Keep the baseline schedule and each contemporaneous update so reviewers can compare planned sequence with actual progress. Separate costs tied to the event from ordinary project costs.

Show causation, cost, and time

A claim should explain the chain from the event to its impact: for example, a late owner decision delayed a predecessor activity, which affected work on the critical path and extended project duration. Support time requests with schedule logic, update narratives, and a clear discussion of concurrent delays or available resequencing. Support cost with labor hours, equipment, material, subcontractor records, and extended project costs where allowed. A total-cost comparison alone may fail to show which event caused which overrun.

Mitigate and document changes

Take reasonable steps to limit the impact, such as resequencing work or protecting completed work, when the contract and circumstances permit. Document both the mitigation attempted and its cost. When the parties agree on changed scope, cost, or time, record it through the contract’s authorized change-order process before the work proceeds where practicable. If the parties disagree, follow the claim and dispute procedures while preserving the right to seek a decision.

Build the record while work is happening

A construction claim is easier to evaluate when daily records show what happened, where, when, who was involved, and what it affected. Track labor by trade and crew, equipment hours, deliveries, installed quantities, weather, inspections, delays, directives, and site access. Connect each entry to a drawing, specification, RFI, change event, or schedule activity when possible. Record contemporaneously and identify estimates as estimates. A late narrative assembled from memory is less reliable than dated records supported by photographs, time sheets, and delivery tickets.

Give notice through the contract channel

Contracts may set short deadlines, named recipients, required content, and a specific delivery method for notice of delay, differing conditions, extra work, or a claim. Read the prime contract and subcontract, including incorporated provisions, before an event occurs. Send notice to the listed person using the required channel and retain proof of delivery. A foreman’s site conversation may not satisfy a formal notice clause. Where the full amount is not yet known, send timely initial notice and update it as impacts develop if the contract permits. Statutes and public-contract rules can add or limit requirements.

Link cause, responsibility, and cost

A persuasive submission explains the contract requirement, the event, who controlled it, how it affected performance, steps taken to mitigate, and the requested time or money adjustment. Separate direct cost from delay impact and avoid double counting. For labor, identify hours, classification, rate, and task; for equipment, record ownership, operating time, and standby basis; for materials, preserve quotes, invoices, and disposition. Schedule impacts should be tied to the accepted baseline and updates, with the affected activities and critical path explained. Maintain a daily chronology and reconcile it with the formal schedule analysis.

Keep change work authorized and traceable

When directed to proceed before price is agreed, document the instruction, issuer, date, scope, labor and material records, and any reservation of rights required by the contract. Use separate cost codes for changed work so it can be measured. Confirm whether the directive is an authorized change, an emergency instruction, or an unresolved request for information. Do not assume a signed ticket waives all further pricing rights—or that it preserves them—without checking the form. Distinguish extra work from correction of defective or incomplete work.

Close the claim file without losing the lesson

Organize notices, responses, meeting minutes, photographs, submittals, RFIs, daily logs, schedule updates, invoices, and mitigation records by event. Keep originals and metadata where practical; label photos with date, location, and view. Track response deadlines, appeals, lien or bond dates, and final-release language. Before final payment, review whether releases cover unresolved claims and whether exceptions are written clearly. Common failures are late notice, unsupported totals, inconsistent dates, missing mitigation evidence, and records that cannot be tied to a specific event. A disciplined file helps the parties resolve facts even when they disagree about entitlement.

Example: concealed condition discovered during excavation

If excavation exposes an uncharted obstruction, record its location, dimensions, condition, and effect before disturbing it. Photograph with a scale, notify the designated contract recipient within the stated time, and request direction. Track standby labor and equipment separately from productive work, and document mitigation such as resequencing to another area. Preserve survey data and the relevant utility drawings. The final submission should connect the condition to the extra time or cost requested rather than merely attach a stack of daily reports.

Keep versions and communications traceable

Use a central event log with a unique number for each potential claim and link every notice, RFI, meeting minute, and cost code to it. Preserve sent emails and receipt confirmations, not only draft documents. Reconcile daily records with invoices and schedule updates before submission. This prevents inconsistent dates and makes it easier to answer a reviewer’s questions without reconstructing the event months later.

Exam takeaway

A defensible claim ties contract entitlement to timely notice, contemporaneous records, causation, quantified cost or critical-path impact, and mitigation. The contract—not a universal industry deadline—sets the notice requirements.