Global Claims: Total Cost Methodology and Substantiation

  • Ali D. Haidar


Global claims come in various forms. It is not uncommon for the contractor to claim the recovery of all the costs incurred in the project less the amount certified. This is often referred to as a total cost claim. Further method has been adopted by deducting from the total cost all costs that are not be related to the contractor own faults or if certain causes could be computed and claimed separately. This category of global claims falls under the modified total cost method. The total cost method and the modified total cost method are described in details in this chapter which emphasis on case law especially in the United States courts where they have originated. The calculation of losses in global claims are explained which are formulated to show the reader the methods needed for a proper calculation. Necessary steps to substantiate these types of claims such as records keeping, documentation, avoidance of claims and mitigation are also included. This chapter intends to provide full awareness on the different types of globally presented claims and the main objectives the claimant must ensue to formulate his claim in an acceptable manner and without prejudicing his rights in case the claim is disputed.


Actual Cost Change Order Contract Price Trial Court Cost Overrun 
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Case Law

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Copyright information

© Springer-Verlag London Limited  2011

Authors and Affiliations

  1. 1.Dar Al RiyadhRiyadhSaudi Arabia

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