Construction Law Glossary

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Plain-language explanations of key terms — for engineers and project managers, not lawyers.

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Claim

A formal assertion by either party (contractor or employer) of an entitlement to additional time, money, or other remedy under the contract. FIDIC Sub-Clause 20.1 sets out a strict procedure for contractor claims: notice must be given within 28 days of the event giving rise to the claim, failing which the right may be lost. Claims must be distinguished from variations (which are instructed changes) and disputes (which involve disagreement).

Completion Certificate

A formal document issued by the Engineer certifying that the works have been substantially completed and are fit for their intended purpose. Under FIDIC, this triggers the start of the Defects Notification Period and entitles the contractor to the release of part of the retention money. Not to be confused with the Performance Certificate, which is issued at the end of the defects period.

Concurrent Delay

A situation where two or more separate delay events — one the responsibility of the employer and one the responsibility of the contractor — occur simultaneously and both contribute to the delay of the completion date. The allocation of liability for concurrent delay varies between jurisdictions and contracts. Under English law, the "but for" test and apportionment approaches apply differently depending on the circumstances.

Contract Price

The total amount agreed to be paid by the employer to the contractor for execution of the works. Under FIDIC Red Book, this is generally a remeasured sum based on actual quantities and BoQ rates. Under FIDIC Yellow and Silver Books, this is typically a lump sum agreed at contract signing. The Contract Price may be adjusted through variations, claims, and other adjustments provided for in the contract.

Critical Path

The sequence of activities in a project schedule that determines the minimum duration of the project. Any delay to an activity on the critical path will delay the overall project completion date. Identifying the critical path is fundamental to assessing entitlement to an extension of time. Courts and tribunals generally require contemporaneous programme evidence to establish causation in delay claims.

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