Construction Claims Explained: Causes and Examples

Construction claims are common throughout the UK construction industry and can affect projects of every size. Whether the issue involves payment disputes, defective works, project delays, or breaches of construction contracts, construction claims can quickly become expensive and disruptive for everyone involved.

At Expert Commercial Law, we connect businesses and individuals with professionals experienced in construction claims, construction disputes, and wider commercial dispute resolution matters across England and Wales.

Construction claims may arise on:

• Residential developments
• Commercial property projects
• Infrastructure works
• Industrial developments
• Specialist construction works

In many situations, construction claims involve several parties, including contractors, subcontractors, developers, consultants, and property owners.

What are Construction Claims?

Construction claims are claims for payment, compensation, additional time, or other legal remedies linked to construction work or construction contracts.

Construction claims may involve:

• Payment disputes
• Defective works
• Delay and disruption claims
• Extension of time claims
• Professional negligence claims
• Breaches of contract
• Loss and expense claims
• Property damage claims

Some claims are relatively straightforward, while others become highly technical and involve large financial losses.

Why Construction Claims Happen

Construction projects are often fast-moving and commercially pressured. Delays, changing instructions, design issues, and communication problems can all create disputes between the parties involved.

Common causes of construction claims include:

• Poor workmanship
• Incomplete works
• Delayed construction projects
• Disputes over variations
• Unclear construction contracts
• Non-payment issues
• Design problems
• Poor project management

Even small disagreements can escalate quickly if problems are not dealt with early.

Payment Disputes in Construction Projects

Payment disputes are one of the most common reasons construction claims arise.

These disputes may involve:

• Unpaid invoices
• Final account disagreements
• Retention payments
• Interim payment applications
• Claims for additional works

Real-Life Scenario: Unpaid Variation Works

A contractor was instructed during a commercial refurbishment project to carry out additional structural works after hidden defects were discovered on-site.

The contractor completed the extra work and later submitted invoices for the additional costs. However, the developer refused payment, arguing that the works had not been formally approved under the construction contract.

Because the instructions had mostly been agreed verbally during site meetings, the dispute escalated into a formal construction claim.

Defective Works Claims

Defective works claims are another major area of construction disputes.

Examples of defective works may include:

• Structural defects
• Roofing failures
• Water ingress
• Unsafe electrical work
• Faulty plumbing
• Poor workmanship
• Incomplete works

Defects can create major financial losses, especially where commercial property or large residential developments are involved.

Real-Life Scenario: Defective Apartment Development

A developer completed a residential apartment project before serious water leaks and damp problems began appearing throughout the building.

Independent experts later identified problems with the roofing system and waterproofing installation. The developer pursued construction claims against the contractor and subcontractors involved in the works.

Because several parties were involved in the project, including consultants and insurers, the dispute became highly technical and required detailed expert evidence.

Delay and Disruption Claims

Delays are one of the biggest causes of construction claims on both residential and commercial projects.

Construction delays may result from:

• Labour shortages
• Material shortages
• Design changes
• Poor coordination
• Access problems
• Late instructions
• Contractor performance issues

Where delays occur, parties may pursue claims for additional costs, lost revenue, or extension of time requests.

Real-Life Scenario: Delayed Commercial Opening

A retail development was due to open before the Christmas trading period. However, delays involving subcontractors and supply chain issues pushed completion back by several months.

The developer claimed losses linked to delayed rental income and missed commercial opportunities. Contractors involved in the project disputed responsibility for the delays.

The dispute eventually developed into a large construction claim involving delay analysis, project records, and expert evidence.

Industry Insight: Why Construction Claims Often Escalate

Professionals experienced in construction disputes regularly see relatively small problems develop into major construction claims because issues are not addressed early enough.

For example, a delayed payment application or disagreement over additional works may initially appear manageable. However, if communication breaks down or project records are incomplete, disputes can quickly escalate.

One of the biggest issues within the construction industry is informal decision-making during construction projects. Contractors are often asked to carry out additional works verbally or through informal conversations on-site. Later, when payment claims are submitted, disagreements arise about whether the works were authorised or included within the original construction contract.

Professionals handling construction claims often stress the importance of strong project management and proper record keeping. Businesses involved in construction projects are usually in a stronger position where they:

• Use clear construction contracts
• Record project variations properly
• Keep payment and project records organised
• Address disputes early
• Seek advice before issues escalate

In practice, businesses that actively managed risks throughout construction projects are often better prepared if disputes arise later.

Professional Negligence and Construction Claims

Some construction claims involve professional negligence allegations against construction professionals such as:

• Architects
• Engineers
• Surveyors
• Project managers
• Design consultants

Professional negligence claims may arise where poor advice, design failures, or inadequate supervision contribute to defective works or financial losses.

These disputes can become highly technical and often require expert reports and specialist evidence.

Alternative Dispute Resolution

Not every construction claim needs court proceedings.

Many disputes can be resolved through:

• Negotiation
• Mediation
• Adjudication
• Arbitration

Alternative dispute resolution methods can often help parties resolve disputes more quickly and cost effectively while reducing disruption to construction projects.

How Expert Commercial Law Can Help

At Expert Commercial Law, we connect businesses and individuals with professionals experienced in construction claims, construction disputes, professional negligence claims, and dispute resolution matters.

Whether the issue involves defective works, payment disputes, delays, or commercial construction claims, obtaining the right support early can often improve the chances of a successful outcome.

If you are dealing with construction claims or construction disputes, tell us about your situation today and we will help connect you with the right professionals for your matter.