Response to Claims: Counter-claims

Abstract

No one likes to be on the receiving end of a claim. From the employer’s point of view it will mean additional cost by way of loss of revenue and/or additional payments to be made to the contractor. From the point of view of the professional advisers to the employers, it may reflect on the firms’ competence in preparing contract documents and on their skills in contracts administration. They may also be faced with additional costs of administration which cannot be recovered from the employer. When contractors receive claims from subcontractors, they will be mindful of the fact that the claim may arise out of their poor organisational skills, in which case they will not be able to obtain reimbursement from the employer or other subcontractors.