Preventing Claims and Construction Claim Management

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Preventing Claims and Construction Claim Management
Preventing Claims and Construction Claim Management

Construction claim management is an unavoidable process while managing a construction project. Many of the construction claims result with time extension and/or additional payment. Contractors make claims due to costs related with overtime, overhead, acceleration of the project, low efficiency etc. It is possible to analyze the root causes of claims and take preventive actions in order to minimize their possibility of occurance.

Tips for Preventing Claims and Construction Claim Management

The following recommendations can help you to prevent your project from construction claims during design and bidding phases. In construction industry, the most common claims against the clients are related with delays and time extentions that cause to make additional payments to the contractors.

1. Be aware of the contract documents because a construction contract is a legal agreement between the client and the contractor. Read and understand the scope of work, general and special conditions and analyze the work schedule, designs and bill of quantities.
2. Recognize the project delivery method (design-build, design-bid-build, design-build-operate,turnkey) being used.
3. Create a compatible organization chart for your project and determine the responsibilities clearly. Determine who should have the responsibility for workschedule, contracts, claims, payments, changes, submittals, transmittals and approvals.
4. Prepare the technical specifications carefully and specify your projects needs and expectations from the contractor.
5. Preapare the workschedule specifications in order to clarify the milestone dates, project start and finish dates, site handover date and constraints. The workschedule specifications should have adequate information of your projects time performance needs.
6. Enforce prime contractors to involve their subcontractors in schedule preparation and execution.
7. Create a library for original documents and revised documents used for design and bidding phases. Be aware of the importance of an effective document control system.
8. Assemble regular meetings with your team to identify the remarkable features of constructive changes and train them. Establish procedures for identification,documentation and solution.

Conclusion

Effective construction claim management is very imperative for the achievement projects goals. Avoiding or minimizing claims is a proactive action from the beginning until the closing of the project. If the project documents are prepared with adequate information in the early phases of the project and the project team is trained with effective coordination and communication, it will be easy to avoid claims during design and bidding phases.

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