From equipment and overhead rates to faulty math and logic, inaccurate or unreasonable claim pricing can delay reimbursement and cause costly disputes. However, with the right strategies, contractors can implement effective pricing methodologies and avoid common mistakes. 

This article will explore how to evade common claim pricing pitfalls and save time, money, and energy along the way.

Understand Liability, Damages & Causation

Construction claims involve two important components, liability and damages. Without proper proof of damages, proving liability is of little value. Conversely, a valid claim for damages requires a plaintiff to establish a “causal link” between liability (e.g., the owner’s actions) and damages (e.g., added costs to the contractor).

Courts often decline to award damages when causation is inadequately demonstrated. Thus, it is important to include costs that can be linked to the actions giving rise to the claim.