Understanding Causes for Construction Claims in Hydropower Projects

Abstract

Hydropower project construction faces huge complexities and uncertainties. Construction claims are very likely to occur, creating losses to contractors and resulting in damage at project level such as breakdown in multiparty cooperation and delays in project completion. Previous studies tended to use subjective methods such as interviews and questionnaires to collect data for claim management research, and did not explore how causal factors interact and evolve to claims. This study aims to explore relationships among causal factors of construction claims (CFCCs), identify critical CFCCs, reveal direct and fundamental causes of claims, and tailor strategies to improve claim management. This work was based on 192 project cases collected from field investigations and academic and official sources; 58 CFCCs and 140 claim causation chains were extracted, forming CFCC networks. CFCCs (nodes) with high total degree and intermediary centrality values in the networks, such as schedule delay, cost increase, and increase of quantities were most critical. Preventing these factors will help eliminate claims. CFCCs with high out-degree values, such as client scope change, changes in construction conditions, construction interruption, and natural hazards, will cause more CFCCs and should therefore be particularly controlled. Besides, CFCCs with high clustering coefficients, such as influence of weather, design errors or omissions, inconsistency between drawings and bill of quantities, construction without advance payment from client, and insufficient site reconnaissance, need to be properly handled because their neighboring nodes can easily influence each other. It was also found that most CFCCs related to engineering influence would directly cause construction claims, and CFCCs pertaining to contractors’ behaviors and external risks tended to fundamentally contribute to construction claims in hydropower projects. The findings and management strategies of this study provide references for claims managers in practice, and are valuable for academics exploring claim management mechanisms in other types of projects.