What is a latent condition claim?
A latent condition claim asks for time and money when you meet hidden site conditions. Examples are rock, water or contamination that the tender did not show.
What a latent condition is
A latent condition is a physical condition on site that was hidden and unexpected. Common examples are rock, buried services, poor soil, groundwater or contaminated material.
Many contracts let the contractor claim time and cost for such a condition. The condition must differ from what a careful contractor could expect.
What you usually need to show
- The condition is different from what the tender information showed.
- A careful contractor could not have foreseen it from the site and the documents.
- You gave notice when you found it, as the contract requires.
- You stopped to let the other side inspect, if the contract asks for it.
- The extra time and cost, with records.
What to do on site
Stop work in the affected area and photograph it at once. Note the date, the depth, the location and who saw it. Send written notice quickly, because many contracts set a short time to do so.
Check which reports and site data were in the tender. A contract may say the contractor carries the risk of the ground, so read the risk allocation clauses.
Every Australian state and territory has its own security of payment law with its own time limits. For example, Queensland usually allows a payment claim within 6 months of the work, or the contract time if shorter.
Related answers
Questions
Is bad weather a latent condition?
Usually not. Latent conditions are physical conditions of the site. Weather is normally handled by a separate clause.
What if I did not read the geotechnical report?
That can weaken the claim. The other side may say a careful contractor would have seen the risk in the report.
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