Commercial Claim Quantification

Commercial Claim Quantification

Overview

Quantify commercial claims by identifying contractual entitlement clauses, calculating time and cost impacts, gathering supporting evidence, and compiling claim submissions.

Announce at start: "I'm using the commercial-claim-quantification skill to quantify a commercial claim."

When to Use This Skill

Trigger Conditions:

• Contract variation or change event occurs
• Employer-caused delay experienced
• Additional work performed beyond scope
• Force majeure event triggers entitlement

Prerequisites:

• Event that triggers entitlement identified
• Contract reviewed for relevant clauses
• Records of the event maintained

Step-by-Step Procedure

Step 1: Identify Claim Entitlement

1. Identify the contractual clause providing entitlement
2. Verify the clause applies to the current event
3. Check notice requirements and compliance
4. Document the entitlement basis

Step 2: Quantify Time Impact

1. Identify planned completion date vs. delayed date
2. Determine if event is on critical path
3. Calculate days of Extension of Time (EOT)
4. Document the delay analysis method used

Step 3: Quantify Cost Impact

1. Direct Costs: Additional labor, materials, equipment directly caused by the event
2. Indirect Costs: Site overhead, administration, extended preliminaries during delay period
3. Overheads: Head office overheads calculated using standard formula
4. Profit: Reasonable profit on the claim if permissible under contract

Step 4: Gather Supporting Evidence

1. Contemporary records (daily logs, correspondence, meeting minutes)
2. Cost records (timesheets, invoices, payment records)
3. Schedule records (baseline schedule, updated schedules)
4. Photographs and site inspection records

Step 5: Compile Claim Submission

1. Executive summary of the claim
2. Entitlement basis (which clause, why it applies)
3. Time claim (EOT calculation)
4. Cost claim (detailed breakdown)
5. Supporting evidence index
6. Conclusion and relief sought

Success Criteria

• Contractual entitlement clause identified
• Time impact quantified with EOT days calculated
• Cost impact calculated (direct, indirect, overhead, profit)
• Supporting evidence compiled and indexed
• Claim submission document produced with all elements

Common Pitfalls

1. Missing Notice Requirements — Many contracts require notice within a specific period. Missing this can bar the claim.
2. Inadequate Evidence — Claims without contemporary records are difficult to substantiate. Maintain records from day one.

Cross-References

Related Skills

• commercial-variation-order-analysis — Variation analysis and rate application
• commercial-contract-interpretation — Clause meaning analysis

Related Agents

• COM-009 Commercial Variation & Claims Agent — Primary agent