Analysis of Highway Project Construction Claims

Abstract

Highway construction contract claims are becoming both more numerous and more costly. This paper analyzes the nature of such claims. Specific insights are offered into both the classification and frequency of claims with respect to damage type, highway project element, and fundamental cause. Preventive tactics that correspond to fundamental causes are also suggested. The research involved analysis of 71 actual contractor claims for additional compensation processed by a large public transportation agency between 1982 and 1987. The data suggest that compensable delays, differing site conditions, and defective contract documents can frequently and severely lead to contractor damages. The following fundamental causes are particularly problematic: contractor's lack of planning and scheduling, owner's reliance on exculpatory clauses, erroneous plans, and the general nature of rehabilitation projects.