HKSM
Claim
A formal demand by one party to a contract (seller or buyer) asserting a right to consideration, compensation, or payment under the contract, often arising from a disputed change or perceived entitlement.
Key Points
- Either the buyer or the seller can file a claim under the contract.
- Claims rely on contract terms (e.g., scope, change, and payment clauses) and must be documented.
- Common triggers include disputed changes, delays, or differing conditions.
- Handled through claims administration, which may involve negotiation, adjudication, or escalation.
Example
A contractor receives direction to add features before a change order is approved. The work proceeds to meet schedule, increasing costs. The contractor submits a claim to the buyer for the additional labor and materials as allowed by the contract's changes clause.
PMP Example Question
A vendor requests additional payment after implementing a customer-requested change that was disputed and not yet formally approved. Under the contract, what is this request called?
- Change request
- Claim
- Procurement audit
- Invoice variance
Correct Answer: B — Claim
Explanation: A claim is a formal demand for compensation or other relief under the contract, typically arising from disputed changes or entitlement issues.
