What is a construction claim and how is it processed?

A construction claim is a claim made by a contractor, subcontractor, or supplier for a loss related to a construction project. This could include a claim for additional or unbudgeted costs, compensation for delays, or any other form of financial loss suffered due to the project. In Maryland, if a construction claim is made, it is typically processed through the Maryland Department of General Services (DGS). This department helps facilitate dispute resolution between contractors and property owners. The DGS will review the claim and decide whether or not it is reasonable and valid. If the claim is valid, the DGS will then work with the contractor, subcontractor, or supplier to determine the reasonable value of the claim. This process may involve obtaining documents such as invoices, contracts, and other forms of evidence from all involved parties. Once the DGS has determined the value of the claim, they can issue an order that requires the property owner to pay the stated amount. If the property owner does not pay the amount specified in the order, the contractor, subcontractor, or supplier may take the property owner to court. The court can then enforce the order and require the property owner to pay the stated amount. The DGS also provides a pre-litigation mediation program so that contractors and property owners can resolve disputes outside of court. This can be beneficial for both parties as it can save time and money while still obtaining a resolution to the dispute.

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What is a construction claim and how is it processed?

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