Claim for damages shall be made in writing to the party liable within a reasonable time and not later than the ______ payment and shall be adjusted by agreement or arbitration.

Claim for damages shall be made in writing to the party liable within a reasonable time and not later than the ______ payment and shall be adjusted by agreement or arbitration.

• A. final payment
• B. first payment
• C. progress payment
• D. retained payment

Answer: (A)

The timing for claiming damages is tied to settling the project accounts. A written claim must be made within a reasonable time and no later than the final payment. This ensures the liable party has a chance to review and resolve the claim before the project is officially closed and funds are fully disbursed. Once the final payment is made, it becomes the point at which adjustments are finalized, whether by agreement or arbitration. First payment and progress payment occur during construction and aren’t the point at which closeout is reached, so they’re not suitable deadlines for this type of claim. Retained payment is money kept back until completion, but the rule ties the claim deadline to the final settlement date itself, not to a withholding component, making final payment the correct cut-off.

The timing for claiming damages is tied to settling the project accounts. A written claim must be made within a reasonable time and no later than the final payment. This ensures the liable party has a chance to review and resolve the claim before the project is officially closed and funds are fully disbursed. Once the final payment is made, it becomes the point at which adjustments are finalized, whether by agreement or arbitration.

First payment and progress payment occur during construction and aren’t the point at which closeout is reached, so they’re not suitable deadlines for this type of claim. Retained payment is money kept back until completion, but the rule ties the claim deadline to the final settlement date itself, not to a withholding component, making final payment the correct cut-off.