The Claims Allocation and Handling Agreement

The Claims Allocation and Handling Agreement (CAHA) is an essential document that outlines the responsibilities of parties involved in a construction project in the event of a claim. It establishes the procedures for dispute resolution, allocation of liability, and handling of claims.

The primary purpose of the CAHA is to establish a framework for managing claims that may arise during the construction project. This agreement typically involves the owner, contractor, subcontractors, and insurance companies, among others. In essence, the CAHA is a “collaborative agreement” that fosters cooperation among all parties involved in the project.

The CAHA outlines the specific procedures that should be followed in the event of a claim. This includes the notification process, investigation, documentation, and resolution. It also specifies the time limits for each stage of the claim process, helping to ensure that claims are dealt with in a timely and efficient manner.

Furthermore, the CAHA identifies the various types of claims that may arise during the project, such as design errors, construction defects, and delays. It outlines the allocation of liability for each type of claim and establishes the procedures for determining liability. This helps to ensure that the appropriate parties bear the responsibility for any damages or losses.

Another crucial aspect of the CAHA is the establishment of a dispute resolution process. This typically involves mediation and arbitration to resolve disputes in a timely and cost-effective manner. The CAHA specifies the procedures for this process and identifies the parties responsible for the costs associated with the dispute resolution.

In conclusion, the Claims Allocation and Handling Agreement is a vital document for managing claims in a construction project. It establishes the procedures for dispute resolution, allocation of liability, and handling of claims. By outlining these procedures, the CAHA fosters cooperation among project participants and helps to mitigate potential disputes. As such, it is essential for all parties involved in a construction project to agree to and adhere to the terms of a CAHA.