What is a construction claim and how is it processed?

A construction claim is a legal procedure used when one party believes they are owed money or services related to a construction project. This can be caused by a breach of contract, a dispute between parties, or a delayed project timeline. In California, any construction claim must follow the procedures outlined in the California Civil Code for construction claims Contracts. The process of submitting a construction claim typically begins with filing a notice of the claim with the other party or parties involved. The notice must include a comprehensive outline of the dispute, including a description of the work performed or services rendered, the date the work was completed, and an estimate of how much is owed. The other parties have 30 days to respond with a written reply. If they agree to the claim in full, they then make payment to the claimant. If one of the parties does not agree with the claim, the matter then goes to a qualified mediator or arbitrator, who will work with the parties to reach a resolution. A settlement agreement is then drafted and signed by all parties, or a ruling is made by the arbitrator. This decision is binding, and all parties must comply with the terms of the agreement or ruling. Finally, the parties may take the case to court. In California, each county court manages construction claims. The court will review the claim and complete a trial. After hearing evidence from both sides, the court will issue a judgment or order for the parties to follow. In any case, construction claims must be processed in accordance with the laws of California, including the Civil Code for construction contracts. This ensures the rights and responsibilities of all parties involved in the claim are properly maintained.

What is a construction claim and how is it processed?

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