A formal demand for compensation by a contractor in accordance with the contract documents can be described as a:

A formal demand for compensation by a contractor in accordance with the contract documents can be described as a:

• A. Proposal
• B. Claim
• C. Inquiry
• D. Request

Answer: (B)

The main idea here is recognizing what term a formal demand for money under a contract is called. When a contractor believes they are entitled to additional compensation or time under the contract—because of a change, a new or differing site condition, or some other compensable event—they raise a formal demand that is defined as a claim. This claim is backed by contract provisions, documented facts, and proper notice within the contract’s procedures, and it can lead to an adjustment such as a change order or, if unresolved, a dispute resolution process. Proposals are offers to perform work or to change the scope, typically used during bidding or negotiation, not a demand for compensation under an already active contract. Inquiries are requests for information or clarification about contract documents, not requests for payment or schedule relief. A generic request can apply to many contexts, but it does not carry the formal entitlement and procedural weight of a claim. So, when a formal demand for compensation is made under the contract, it’s most accurately described as a claim. Example: encountering an unforeseen condition that increases costs would prompt a contractor to file a claim with the contract’s notice and documentation requirements, potentially leading to a change or adjustment if justified.

The main idea here is recognizing what term a formal demand for money under a contract is called. When a contractor believes they are entitled to additional compensation or time under the contract—because of a change, a new or differing site condition, or some other compensable event—they raise a formal demand that is defined as a claim. This claim is backed by contract provisions, documented facts, and proper notice within the contract’s procedures, and it can lead to an adjustment such as a change order or, if unresolved, a dispute resolution process.

Proposals are offers to perform work or to change the scope, typically used during bidding or negotiation, not a demand for compensation under an already active contract. Inquiries are requests for information or clarification about contract documents, not requests for payment or schedule relief. A generic request can apply to many contexts, but it does not carry the formal entitlement and procedural weight of a claim.

So, when a formal demand for compensation is made under the contract, it’s most accurately described as a claim. Example: encountering an unforeseen condition that increases costs would prompt a contractor to file a claim with the contract’s notice and documentation requirements, potentially leading to a change or adjustment if justified.