Construction Claim Management Research Articles

Governmentality in construction claim management: Role of smart data initiatives

Despite efforts to identify and prevent causes, construction claims remain inevitable and repetitive. Therefore, focus has shifted to managing claims with systematic processes, yet challenges related to claim preparation persist. Drawing from political governance, where data analytics promote self-governance to overcome similar challenges, this study contrasts politics with construction claims, aiming to investigate potential for adopting similar data-driven approaches in the construction claim context. Through a systematic literature review in conjunction with ten industry interviews, we present similarities in control mechanisms and disciplinary powers as regulatory elements but reveal dissimilarities in self-governance and utilisation of data analytics. This study proposes categorizing initiatives in claim preparation to people-led, organisational-led, and data-led with data analytics pivotal in each. Through the application of data analytics resembling governmentality within the realm of political governance, the study reveals that the integration of self-governance and smart data analytics presents a potential solution for effectively addressing the challenges inherent in the preparation of construction claims.

Claim Management and Dispute Resolution in the Construction Industry: Current Research Trends Using Novel Technologies

In the Architecture, Engineering and Construction (AEC) industry claims arise frequently, often resulting in disputes. Claim management should be efficient to prevent claims from escalating into disputes, and if disputes are still unavoidable, they should be resolved without delay for the construction process to resume. First, by conducting a bibliometric review, this paper attempts to investigate the literature on construction claims and dispute resolution practices by employing the Scopus database and VOSviewer to retrieve and analyze related sources. The overall trend of research by country, source, and authors is detected, and the emergence of novel technologies such as BIM, blockchain, and smart contracts appearing after 2020 concerning the investigation into construction claim management and dispute resolution was identified. Second, a content analysis on the most recent publications published between 2020 and 2022 was undertaken, indicating six main research themes that represent current research trends. The employment of novel technologies to enhance claim management and dispute resolution practices in the AEC sector is identified, as well. Finally, in order to assist construction professionals and researchers in their work to address construction claims and disputes more efficiently, potential research directions are proposed.

AN OVERVIEW OF MULTI-CRITERIA DECISION MAKING TECHNIQUES IN CONSTRUCTION PROJECTS CLAIMS MANAGEMENT

Claims in the construction sector result from, but not limited to, poor contract performance, delays, conflicts and force majeure. The use of Multi-Criteria Decision Making (MCDM) techniques are proposed in construction-related decision-making and prove advantageous in ensuring that claims management processes are effective. This paper provides an overview of existing MCDM techniques proposed for construction claims management. A narrative literature review is performed where Google Scholar and EBSCO host are used to identify relevant articles for the study and 49 articles were selected. From literature, some of the proposed techniques in construction claims management are AHP, ANN, NN, MAUT, SWOT, TOPSIS and VIKOR. Findings from the study indicate that the outdated nature of traditional standalone MCDM techniques has seen the use of hybridised models in construction-related decision-making more useful. Supplementing MCDM techniques with techniques such as BIM is rather relevant since BIM alone has the potential to reduce claims emerging from large construction projects.

A Conceptual Framework for Managing Construction Claims in the Face of the COVID-19 Pandemic in Nigeria

Claims are inevitable and have become an indispensable part of modern construction. The complexities, risks and uncertainties surrounding construction business environment often lead to unforeseen circumstances which disrupt the progress of works and give rise to contractual claims. One of such unexpected events presently causing disruption for construction contractors is the coronavirus or COVID-19 pandemic, which is exerting a significant but unprecedented impact on the delivery of construction projects, resulting in delays and additional costs for contractors, suspension of works and a disruption of the construction supply chain. Due to its novelty, the COVID-19 pandemic has presented a distinctive challenge for construction claims management. Therefore, if construction project parties are to prevent claims from escalating into dispute, it is imperative that the claims arising from construction contracts, as a result of the COVID-19 pandemic, are effectively managed. This study therefore examined the deficiencies of existing construction claims management process with a view to providing a conceptual framework for more effective management of claims that may arise as a result of the COVID-19 pandemic in Nigeria. Questionnaire responses were received from 162 construction small, medium and large contractors in Akwa Ibom State, Nigeria. The result indicates that failure to interpret contract terms is the most significant deficiency in contractual claims management process. Other important deficiencies in the claim management process include contractors’ inability to recognise claims events, failure to establish legal and factual grounds and poor records or documentation to support claims. With this, a conceptual framework for effective management of claims in the face of the COVID-19 pandemic was developed for use by contractors.

A BIM-based construction claim management model for early identification and visualization of claims

PurposeThis study aims at introducing a claim management model based on building information modeling (BIM) for claims that can be visualized in BIM models.Design/methodology/approachBased on the results of a questionnaire survey, 10 claims were identified as claims that can be visualized in BIM models (named hard claims in this study). Then, a BIM-based claim management model was developed and used in a case study.FindingsA BIM-based claim management model is represented. The claim management process through this model consists of four steps: (1) extracting project information, identifying conditions prone to claim and storing them into a relational database, (2) automatically connecting the database to building information model, (3) simulation of the claims in building information model and (4) final calculations and report.Practical implicationsThe proposed model can provide benefits to parties involved in a claim, such as early identification of potential claims, large space for data storage, facilitated claim management processes, information consistency and improved collaboration.Originality/valueThere are a few studies on providing solutions to claim management based on BIM process. Hence, the original contribution of this paper is the attempt to set a link between BIM and claim management processes.

Causes and Problem Identification in Construction Claim Management

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.

Survey of Claim Pricing of Construction Projects in Thailand

Efficient construction claim management is necessary for all parties in a construction project. Claimpricing is one of the most important sub-processes of claim management, which gives substantive descriptionand details of extra costs incurred or to be incurred due to change. This paper aims at 1) finding suitable pricingmethod for each claim component of both contractors and employers, and 2) surveying claim pricing process ofexisting employers’ claim management system. The research was done by reviewing literatures, analyzingFIDIC’s “Conditions of Contract for Construction (First Edition)”, and performing interview of 29 key staff fromboth public and private organizations. It was found that there are 23 contractor’s claim cost components and 22employer’s claim cost components. From the survey results, Thai construction industry has much simpler claimpricing methods than those theoretically described in international practices in several aspects, i.e. the numberof claim components and the indemnity method. This factor should be recognized in the development of theindustry dealing with the high international competitive atmosphere in the future.

Construction claim problems in Malaysia: from the contractors perspective

There is high frequency of disputes arising from construction contract claims. Even with the most expert understanding of construction contract and the most reasonable risk-allocation system, claims will continue to present problems if they are poorly managed in practice. The significantly increasing number of construction claims indicates the need for the implementation of an effective construction claim management. This research aimed at surveying the most common problems experienced by Malaysian contractors in construction project. The paper presents the survey results and main findings, which indicate that the lack of site staff awareness to proactively detect claims, inaccessibility or unavailability of relevant documents, and conflicts arising during owner/contractor negotiation are all critical problems associated with the process of claim management. The problems observed from this research could be used to solve or improve the contractors' claim management system.

Improving construction claim management in Malaysian construction industry

The construction industry in Malaysia is large and it involves multidisciplinary participants. There is high frequency of disputes arising from construction contract claims. Even with the most expert understanding of construction contract clauses and the most equitable risk-allocation management, claims will continue to present problems if they are poorly managed in practice. The significantly increasing number of construction claims indicates the need for the implementation of an effective construction claim management. This research aims to improve the process of claim in construction industry. This research explores the problems related to the process of claim from contractors’ and consultants’ point of view by studying common procedure of claim management. The findings highlight on the three key issues. There are claim identification, claim notification and claim documentation. These issues are the most troublesome and contribute to the significant problems in construction claim process. It also appears that a standard and transparent procedure should be put in place whereby contractors would be able to follow to properly prepare the claim. In addition, staff awareness, training in how to document and submit a well-supported claim, and negotiations with clients are becoming a necessity.

A Study of Construction Claim Management Problems in Malaysia

Abstract The frequency of claims is unavoidable given the nature of the contracts, their complexity, the number of parties involved, the risk and the pressure of time constraint in the preparation of the contract documents and the realisation of the work. The significantly increasing number of construction claims indicates the need for the implementation of an effective construction claim management. This paper will look into claim problems experienced by Malaysian contractors in construction projects. To achieve this, questionnaires survey were conducted involving the contractors and consultants. The findings indicate that the lack of site staff awareness to proactively detect claims, inaccessibility or unavailability of relevant documents, and conflicts which arises during owner/contractor negotiation are all critical problems associated with the process of claim management. The problems observed from this research could be used to solve or improve the contractors’ claim management system.

Construction Claims Management of Civil Engineering

Construction claims are contractor's legitimate rights from contract. And it is also the legal means to maintain economic interests. The quality of claim reports comprehensively shows the level of claim management. This paper expounds the constituents of claim reports and their correlations. Calculations for financial claims and time claims are mainly analyzed and skills of making claim reports is analyzes too. This paper provides reference to claims management personnel.

The development of a multi-agent system for construction claims negotiation

Negotiation is an important stage in construction claims management process. Unfortunately, most construction claims negotiations are conducted inefficiently due to various reasons. The recent development of multi-agent systems provides an innovative approach to facilitating various negotiations. This research has developed a multi-agent system for construction claims negotiation (MASCOT) to resolve the inefficiency problem. This paper discusses the key points of the MASCOT model. Of particular interest is the computer implementation of the developed MASCOT model using the ZEUS agent building toolkit.

Construction Contractors' Claim Process Framework

The management of construction claims is the greatest challenge that is facing contractors in today's vacillating business environment. Construction projects are becoming increasingly susceptible to a variety of factors that give rise to time extension and cost recovery. Although the construction business environment has moved toward partnering arrangements in recent years, the number of contractual difficulties continue to rise. Thus, the construction industry needs to develop methodologies for construction claim management that should overcome their current problems. While some practitioners have been using some kind of a procedure for claim management process framework measuring tool, a written exposition of such an instrument is not widely available in the literature. This paper presents the principles that underly construction claim process and gives a generic framework that aims at facilitating measurement of construction claim process as one of the strategies for improving construction business pro...

Construction claims management: towards an agent-based approach

Abstract Disputes are now considered endemic in theconstruction industry. They often arise from the poorresolution of claims in the course of constructionprojects. Efforts have been geared towards reducingthe incidence of claims. These efforts are of two kinds:those that seek answers from basic principles and legalissues at the pre-construction phase and those thatattempt to solve the problems through claimsmanagement procedures at the construction phase.This paper reviews the developments in claimsmanagement and highlights the deficiencies in currentclaims management approaches. It focuses on the needfor improvement of the efficiency of claims negotiationand suggests the use of multiagent systems as anapproach to achieve it. The potential benefits of thesuggested approach are discussed in the concludingsection of the paper.Keywords claim justification, claim negotiation, claimquantification, claims management, multiagent systems,risk management INTRODUCTIONOver the past three decades, the construction industryhas experienced an increase in claims, liability expo-sures and disputes, along with an increasing difficultyin reaching reasonable settlements in an effective,economical and timely manner (Barrie & Paulson,1992). The unique, dynamic and complex nature of theindustry inevitably leads to a situation where conflictsare bound to arise, and claims are inevitable. In fact,claims are now considered as a way of life for theconstruction industry (Bradley & Langford, 1987), asshown by the following:• Onyango (1993) found that 52% of all UK cons-truction projects ended up with a claim of sometype;• Keane (1994) reported that £1.2 billion could be thesubject of construction claims or disputes at any onetime and that more than 83% of contractors claimedfor one or more time extensions during 1992–94 inthe UK;• Semple et al. (1994) identified that more than half ofclaims constituted an additional cost of at least 30%of the original contract value based on their survey ofconstruction projects in Canada. In addition, about athird of claims amounted to at least 60% of theoriginal contract value. In some cases, the claimvalues were almost as high as the original contractvalue.The reasons for this problem are very complex, andcan be analysed from social, industrial and projectperspectives:• Social factors: the construction industry, as a whole,is under increasing pressure from the society to bemore competitive in terms of cost, time, quality andenvironmental issues. As a result, the industry isbecoming more risky than ever;• Industrial factors: the wide range of participants, theincreasing size of projects, enhanced competitivetendering, increasing technological complexity,uncertainty in construction environments, unbal-anced risk allocation, and complex and confusedinterdependent relationships brought about by someproject procurement systems, also contribute toconstruction claims;• Project factors: unforeseeable site conditions, unreal-istic planning and specifications, changes by theclient, acceleration, unfulfilled duties by projectparticipants and ‘force majeure’ are the direct causesfor claims (Ren, 2000).To seek answers to the problem, numerous researchprojects, courses and publications on various aspects ofclaims, such as Wood (1975), Diekmann & Nelson(1985) and Levin (1998), have been undertaken toinvestigate industrial practices and to explore theprinciples and procedures of claim settlement anddispute avoidance. Basically, these efforts are of two

Construction claims management: towards an agent‐based approach

Disputes are now considered endemic in the construction industry. They often arise from the poor resolution of claims in the course of construction projects. Efforts have been geared towards reducing the incidence of claims. These efforts are of two kinds: those that seek answers from basic principles and legal issues at the pre‐construction phase and those that attempt to solve the problems through claims management procedures at the construction phase. This paper reviews the developments in claims management and highlights the deficiencies in current claims management approaches. It focuses on the need for improvement of the efficiency of claims negotiation and suggests the use of multiagent systems as an approach to achieve it. The potential benefits of the suggested approach are discussed in the concluding section of the paper.

A review of the role of information technology in construction claims management

Compared to other management functions of construction organisations, claims management has benefited much less from information technology. The problems with claims management are most profound in the areas of claims justification, quantification and acute with respect to retrieval of supporting information and adequacy of information. Several computer systems designed for other functions are used in the process. Spreadsheets, databases and project management packages are used frequently, while expert systems have been proposed to ease justification. Newer technologies such as electronic document management systems and imaging systems are yet to find widespread use in industry. The latter systems are the ones for the future. Used in conjunction with other systems on an integrated platform, they offer the way forward in producing a dedicated system for claims management.