Most construction contracts contain detailed notice provisions governing claims presentment.
This is essential in securing your right to be paid for claims that arise during a construction project. Typically, the notice provisions require a party to provide the other contracting party with notice at or near the time of a claim occurrence.
Timely notice is vital to preserve the non-breaching party’s right to recover damages for extra work, compensable delay or other performance impacts, even if the amount of damages cannot be determined at the time of the incident. Compliance with the notice provision allows the non-breaching party to preserve its rights and provide notice at the time of an occurrence.
Timely notice also helps build a timeline to resolve the dispute, triggers the recipient to develop defenses or offsets if available and helps the parties recognize the need to preserve evidence.
Failing to provide notice, under the terms of many contracts, waives a party’s right to recover in the same manner as signing a waiver of any and all claims. The lesson: Be aware of the notice provisions contained in your contracts, and be diligent in compliance. Failing to do so can be detrimental.
