Damage, Defects and Delay – the interplay between insurance and construction claims

When disputes arise in the context of a construction project (which they commonly do) and the principal seeks recourse for damage and delays, a complex interplay can arise between claims between principal and contractor, and claims with insurers.  Focusing on one to the exclusion of the other can inadvertently create a gap in recovery, leaving money 'on the table'.

Unfortunately, this is a situation that arises all too often, particularly where the respective claims are handled by different teams within their organisation, without coordination. Developing a holistic recovery strategy, addressing claims against both the contractor and insurers, allows principals to assess the relative strengths and priority of the claims, make informed decisions when conducting both claims, and maximise overall recovery.

Read our article in the latest edition of Inside Arbitration written by Alexander Oddy (UK) and Travis Gooding (Australia) along with Dan Waldek (Singapore) and Nick Oury (Dubai) which explores some of the key aspects of the interplay and the tensions that arise when a principal has both an insurance claim and a claim under the construction contract.