Improving Management of Claims: Contractors' Perspective

Abstract

There is high incidence of disputes arising from construction contract claims. Even with the most expert understanding of construction contract clauses and the most equitable risk-allocation regime, claims will continue to present problems if they are poorly managed in practice. The research reported in this paper was aimed at identifying shortcomings, and their causes, in claims-management practice. It consisted of a comprehensive review of literature on the subject, a postal questionnaire survey of, and interviews with, contractors and consultants, and case studies of claims on projects. A major finding is that claims management is not treated as a management function on the same footing as estimating, planning, scheduling, and cost control. It is poorly resourced and performed in an ad hoc manner. As a consequence claims-related issues are too often put in abeyance until project completion when necessary resources are released from recognized functions. Issues, documents, and information normally at the center of disputes have been identified. These have to be the focus in decision making, in training, and in redesigning relevant company information systems, and must change management strategies.