Claims in Construction Projects: A Comprehensive Literature Review

Abstract

Construction industry plays main part in the financial development of a country and occupies an essential position in the state’s growth policies. Construction industry generates thousands of jobs into different sectors to accommodate people according to its capabilities. On the contrary, it faces huge number of claims, as a result it gives birth to various problems including additional cost and time to complete the project. Therefore, this paper aims to identify the common types and causes of claims generally occur in construction industry and specifically in large scale projects. A detailed literature review has been carried out for this research and covers past research papers of the last two decades. The results showed delay in claims and extra work claim submitted by the parties, they are the main types of claims followed by contract ambiguity claims, extension of time claim and suspension of work claims. Delay of payment is the most important cause of claim followed by incomplete design, variation order, change order by owner, lack of communication and in last poor project management. It is concluded that proper contract documentation should be done and early error identification in contract documents, drawings and specifications should be highlighted. Finally, it is recommended to adopt proper claim management policy and procedures to address the queries by all parties. This paper will be used to design future guidelines in managing claims in large scale construction projects to improve the performance of construction industry.