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Penalty Clauses Around the Globe

Claus Lenz, Erin Miller, Hamish Lal, Roberto Aguirre, Thiago Moreira

This article aims to analyze how some legal aspects and rules may influence on how owners and contractors approach claim management in construction projects, taking special consideration in regards to scope change and time limit to present claims. There has been a recent push for the development of a claim management culture aimed at avoiding litigation and arbitration. In this article, it will be explored the root causes, both from a legal and cultural perspective, that may influence the parties approach when managing claims in different parts of the world.