Management of the Contract Claim Presentation and Response in Ethiopia: The Case of Addis Ababa

Abstract

This research aimed to investigate the difficulties interrelated to contract claim management from the client, contractor, and consultant’s perspective by studying the claim process in public housing construction projects in Addis Ababa, Ethiopia. Both primary and secondary data were collected based on the survey strategy through 72 questionnaires and 250 organizational documents. The data were analyzed using Relative Importance Index, Spearman’s correlation Coefficient, framework analysis, and linear multiple regression model. The research findings showed that the most potential sources of claims were: delays in the supply of input materials; design change; weather conditions; undue delay in the release of payment; and failure to give written instruction. In addition, the contractors' main problems in the contract claim management process are high project managers’ workload, lack of contract knowledge, late notification of claims, poor communication, and unorganized project office administration. The variables of claim notification, identification, and presentation are positive and significantly affected the project claim management process, whereas claim examination and documentation haven’t significance to the project claim management process. The researcher recommended that the three major parties client, the Contractors, and the Consultants shall prevent disputes and minimize claims in the project by attaching through seeking legal advice early, setting up the Disputes Adjudication Board, and improving contract knowledge.