Claims Code

1. The parties will deal with all claims between them in accordance with the following procedures. “Claims” means claims or disputes in relation to or arising out of the Contract, including payment, extension of time, variations, the issuing of certificates, defects, non-performance, or any other claim or dispute between the parties.
2. The claimant will take all reasonable steps to ensure that:
   
   1. the claimant submits to the opponent and to the dispute resolution tribunal only those claims which it honestly believes to be true, and which can be reasonably substantiated by accurate written or oral evidence;
   2. the claimant has a bona fide legal or contractual entitlement to the matters claimed by it;
   3. the quantum of the claim has been accurately calculated in accordance with the contract requirements or, in the absence of contract requirements, on a reasonable price basis;
   4. the amount claimed has not been artificially marked up to include a “negotiating margin” or other illicit gain;
   5. evidence contrary to the claim is disclosed to the opponent and dispute resolution tribunal alongside evidence in favour of the claim.
3. The recipient of the claim will take all reasonable steps to ensure that:
   
   1. it reviews the claim diligently, objectively and in good faith;
   2. it promptly pays any sums, awards any extensions of time, and issues any certificates which it believes are due in relation to the claim;
   3. it promptly provides full reasons in relation to any items of the claim which it refuses to accept;
   4. it complies with the obligations imposed on the claimant referred to above in relation to any allegation which it raises as a reason to reject the claim, or by way of set-off or counterclaim.
4. Nothing in this clause is intended to limit the conscientious and vigorous pursuit of legitimate claims. The aim is to eliminate false or inflated claims.
5. Each party will take all reasonable steps to ensure that these provisions are complied with by all of its staff, consultants, parent and associated and subsidiary companies, agents, consortium and joint venture partners, sub-contractors and suppliers.
6. If the recipient of a claim has prima facie evidence that the claim is incorrect due to the deliberate or reckless act of anyone associated with its submission, the recipient may report the matter to the authorities, and to any applicable trade or professional association.