Causes and Problem Identification in Construction Claim Management

Abstract

The construction service industry is a sensitive and a complex industry and has a fairly high construction uncertainty, related to the development of processes, methods, construction techniques, and the natural conditions factor in construction activities, and often result to claims. Claims can occur both from users or contractor due to perception differences from the initial agreement that has been stated in a construction contract. Construction claims appear as a result of problems in aspects of organization, planning, and contracts. A claim can be described as an administrative tool to correct failures that occur in the construction process. The application of good claim management will be able to avoid dispute that will have an impact on cost overrun and time overrun. This study aims to identify the factors that cause the occurrence of claims during the construction work and identify the problems in each claim management process. The study was conducted by collecting questionnaire data to respondents, practitioners from the owner, contractor and consultant. Data analysis was performed using qualitative analysis (descriptive analysis) to determine the highest score of respondents’ opinions regarding the causes of claims and problems that occur in each claim submission process so that an effective and efficient claim submission process is produced.