Claim Management

Construction projects are expensive, and they usually end up being more expensive than agreed. The principal often tries to mitigate this risk by concluding a lump-sum contract.

Terms such as "lump-sum", "fixed price" or "all-inclusive price" often lead to the misimpression that the price payable upon completion of the construction will not be higher than agreed. This mistake has led to massive financial difficulties for many principals when the final invoice is issued by the contractor. Even a lump-sum is nor carved into stone. An agreement on a lump-sum will result in the same final price as that originally agreed only if during the construction period no alterations have been made to the construction plans, methods, etc. But anyone who has dealt with construction work knows that a construction project is rarely built exactly as planned.