Foreword: The past two years have been the peak period of disputes over the arrears of project payments in China, and the long-term delay in the payment of project funds has led to many small-scale companies going bankrupt, and has also caused many greater contradictions. We believe that the response should be started in advance in the following aspects:
1. Ensure that there is sufficient factual and legal basis.
A clear and solid factual and legal basis is essential in the process of engineering claims. The claim shall be based on the contract signed by both parties, the facts that have occurred, and the relevant legal provisions. If the contractor files a claim against the owner without sufficient or valid basis, this will not only reduce the success rate of the claim, but may also damage the cooperative relationship between the two parties. Therefore, it is advisable to collect and collate the relevant facts and legal basis in detail before starting the claim process, and properly preserve the relevant evidence materials to ensure that you can be in an advantageous position in the negotiation.
2. Collect and preserve evidence in a timely manner.
The importance of evidence cannot be overstated. During the construction of the project, the contractor may suspend the claim in order to maintain the relationship with the owner, but this does not mean that the collection of evidence can be ignored. Failure to retain relevant evidence in a timely manner may lead to difficulties in future negotiations. Therefore, we recommend that the contractor should keep an eye on the progress of the project and collect and preserve the evidence related to the claim in a timely manner.
3. Confirm the outcome of the negotiations.
If there is an opportunity to negotiate with the employer for the payment of the project, it should be negotiated as much as possible. After the negotiation is completed, the contractor shall promptly send the negotiation results, meeting minutes or the proposed letter to the owner for confirmation and signing. This step will not only help reduce possible disagreements in the future, but also help move the parties towards a final agreement.
Fourth, choose the right time for negotiation.
Choosing the right time to negotiate a claim is crucial. Generally speaking, it is more advantageous to negotiate at key points such as the completion of the project and the cooperation with the acceptance procedures. At this time, the value of the project has been basically reflected, the contractor has fulfilled its obligations, and the owner is also faced with important matters such as property rights transfer and filing procedures. The contractor should make full use of these opportunities to file a claim.
Fifth, pay attention to the owner's financial situation.
Knowing where the owner's funds are available is also crucial for claims negotiation. Often, the reason for the delay in payment by the owner may be related to their financial situation. Therefore, the contractor should pay close attention to the owner's financial situation in order to make a negotiation request at the appropriate time.
6. Adhere to the contract as the basis.
When negotiating construction claims, the contractor should always adhere to the contract as the basis and the law as the criterion. According to the contract signed by both parties, the owner shall usually bear the corresponding liability for the increase in costs or the extension of the construction period due to reasons not attributable to the contractor. Therefore, the contractor should firmly safeguard its own rights and interests in the negotiation process and ensure that the claim is reasonably resolved.