Claims Payment and Funding Mechanisms
Generally when a claim is received, it is the Project Manager who negotiates a settlement with the Contractor / Consultant. When they have come an agreemeent, payment is issued via a payment request form.
- resolution of negotiated claims from contractors/consultant
- resolution of claims that arise from the general management of the overall project
- pre-arbitration/litigation settlements prior to formal arbitration/litigation
- resolution of impact costs or delay costs
Project manager must
- Create a temporary docket and process using the CPMU'—Claims Quality Assurance Checklist
- refer to Table 1 in document titled 'Claims Processes'
Client Project Funding
Clients are responsible for
- costs for correction of errors/omissions, as a consequence of what should have been identified by the client at the requirements definition stage, including additional costs of PSPC and its contracted parties
- costs incurred as a result of client modifications to the project, implemented in such a way as to cause a claim, rather than the standard change order process
- payment of all other costs which add value to the project, including payment for claims analysis management and defense
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