Builders and Contractors Exchange
Weekly Bulletin: 11 Oct 2004
Have You "Noticed" Your Claim?
By: James Harvey III
As a contractor, you think that "everyone" knows about that error in the plans, that differing site condition underground, that quantity overrun, or that change order you think is coming, which is affecting your work. However, unless you actually provide written notice within the time spelled out in your contract, you run the distinct risk of never being compensated for that problem.
Virginia law can be extremely hard on a party that fails to comply with the notice requirements in a contract. Quite often, contractors discover an obstruction or discrepancy in the plans before they can recognize the magnitude of the problem. Many contracts are written so that notice must be made within a few days of the initial discovery of the problem. If it is not your regular practice to make written note of these issues, then you are possibly waiving any later claim relating to that problem, despite "everyone's" knowledge of the problem. Even if you did not provide immediate notice, it is important that when you become aware of the magnitude of a problem (cost or time), you provide immediate written notice to the entity with whom you contracted.
As lawyers, we often see that people on different sides of a project have different opinions as to the existence of a problem, or as to a problem's magnitude or impact. Relying on meetings, conversations or phone calls to establish what "everyone" knew becomes problematic. A simple, non-confrontational writing is often the best way to clearly communicate your concerns, even if they never materialize into a claim. By making a clear written communication, you are increasing the likelihood that a dispute will never occur.
Questions?
If you have any questions about this article or any other related matters, please contact:
This article is meant to bring awareness to this topic and is not intended to be used as legal advice.