What is a global claim and why do they fail?
A global claim asks for one lump sum for many events without tying each cost to its cause. They often fail because the other side can say some of the cost is not its responsibility.
What makes a claim global
A global claim lists several events and then states a single total. It does not show how each event caused a share of the cost or delay.
This happens when records are thin. The claimant knows the project cost more, but cannot say which event caused which part.
Why they fail
- Some of the cost may come from the claimant's own errors.
- Some may come from risks the contract gave to the claimant.
- The other side cannot test the claim item by item.
- Adjudicators and courts want a link from cause to cost.
- Weak records make that link hard to show.
How to avoid one
Record each event as it happens. Note the date, the cause and the first cost estimate. Keep timesheets and plant records that show which crews worked on which change.
Build the claim event by event. Show the extra hours, the extra materials and the delay to the programme for each one. A claim built this way is easier to defend and easier to pay.
Whether a global approach is allowed in a particular case is a legal question. It depends on the facts and the contract.
Related answers
Questions
Can a global claim ever succeed?
In some cases the courts have allowed one, but you should not plan on it. Event by event claims are safer.
How do I fix a claim that is already global?
Go back to the records and split the cost by event where you can. Then reissue the claim with the detail.
Need this done for your project?