120R-21Intermediate20 min read

Demonstrating Entitlement for Change Orders or Claims

A claim is a chain — event, contract right, notice, causation, responsibility, mitigation, quantum. Prove all seven links of entitlement before you ever argue the number. Built on AACE 120R-21.

Entitlement first, quantum second

Every claim answers two distinct questions, in order. First entitlement: do you have the right to recover at all? Second quantum: how much are you owed? They're judged separately, and entitlement is the gate. Fail the gate and the most precise quantum in the world is irrelevant.

The seven elements of entitlement

To demonstrate entitlement, a claim must establish all seven of the following — the same seven that underpin the cumulative-impact claim, here in their general form. Each comes with what a beginner must actually do.

A causative event occurred — an identifiable event or condition happened (a change, a late drawing, a differing site condition, an owner delay). You do: pin the event to a date and a record.
Contractual or legal entitlement exists — a clause or legal principle entitles you to recover for that type of event. You do: name the clause your claim relies on.
Notice was given in time — you notified the other party within the contractual window. You do: send specific, dated notice the moment the event appears.
Causation is demonstrated — the hardest box: connect the event to the harm. You do: show the mechanism, not just a coincidence in time.
Responsibility lies with the other party — the event was the owner's risk under the contract. You do: show the risk sat with them, and carve out any share of your own.
You mitigated prudently — you took reasonable steps to limit the damage. You do: document the steps you took to reduce the impact.
Impacts are quantified — time and cost effects measured with a defensible method and records. You do: pick the most reliable method your records can support.

Causation — the cause-and-effect chain

Element 4 is where most claims are won or lost. Causation is the explicit, traceable link from the event to the loss. It's not enough to show an event happened and that you lost money in the same period — that's mere coincidence in time. You must show the mechanism.

Each arrow must be supported by evidence: the dated design log (event), records showing resequencing (mechanism), the productivity measurement (effect), and the cost build-up (damage). Skip the middle links and the other side argues the loss came from elsewhere.

Worked case — does this claim pass the gate?

A contractor seeks recovery for a differing site condition (unexpected groundwater) that flooded an excavation. Walk it through all seven elements.

Testing the seven elements

Worked example

#	Element	This claim	Pass?
1	Causative event	Unforeseen groundwater at founding level	✓
2	Contractual entitlement	Contract has a Differing Site Conditions clause	✓
3	Timely notice	Notice given day 4 of a 14-day window	✓
4	Causation	Dewatering logs + schedule show 9-day critical stoppage	✓
5	Owner responsibility	Geotech baseline showed dry conditions — owner's risk	✓
6	Prudent mitigation	Pumps mobilised in 24h; resequenced where possible	✓
7	Quantified impact	Dewatering cost + 9 days prolongation, with records	✓

All seven pass — entitlement is established, and the claim proceeds to quantum. Now change one fact: suppose notice came on day 20, outside the 14-day window. Element 3 fails — and despite a genuine, owner-caused, well-documented loss, the claim can be defeated on timeliness alone. That single broken link is why notice is drilled so hard.

Entitlement self-check

Entitlement needs all seven. Untick any one to see the chain break.

Entitlement self-check

Try it yourself

Entitlement needs all seven. Untick any one to see the chain break.

All seven links hold — entitlement established. Proceed to quantum.

Ten things to remember

Entitlement before quantum — the right to recover comes before the amount.
Entitlement is the liability question; quantum is the damages question.
All seven elements are required — the chain breaks if one fails.
No matching contract clause = no recovery (element 2).
Late notice can defeat an otherwise valid claim (element 3).
Causation — element 4 — is where most claims are won or lost.
Show the mechanism: event → disruption → effect → damage, each evidenced.
The risk must contractually belong to the other party (element 5).
You must show prudent mitigation (element 6) — unlimited loss isn't recoverable.
Run every claim through the seven-element test early, while records still exist.

Glossary

Burden of proof: The claimant's obligation to establish each element of entitlement with evidence.
Causation: The traceable link showing a specific event produced a specific, measurable impact.
Causative event: The identifiable event or condition that triggers a potential claim.
Contemporaneous records: Records created at the time of the event — the strongest evidence for causation and quantum.
Differing site condition: A physical condition materially different from the contract baseline — often owner-risk.
Entitlement: The right to recover additional time or money for an event — the liability question.
Mitigation: Reasonable steps a claimant must take to limit loss; failure to mitigate reduces recovery.
Quantum: The amount of recovery — judged after entitlement is established.

Check your understanding

1Which question must be answered first in a claim?

2How many elements of entitlement must be established, and what happens if one fails?

3Causation (element 4) requires you to show:

4A genuine, owner-caused, documented loss is claimed, but notice came on day 20 of a 14-day window. The likely outcome:

5"Entitlement is the liability question; quantum is the ___ question."