Management of Contractor’s Claims in Construction Projects

• Main Author: Lukáš Klee
• Format: Article
• Language: English
• Published: Institute of Technology and Business, České Budějovice 2013-01-01
• Series: Littera Scripta
• Subjects: claim; claim management; construction company; project management; additional payment
• Online Access: http://www.littera-scripta.com/management-of-contractors-claims-in-construction-projects/

The main objective of this work is to suggest a suitable way for efficient implementation of a Contractor’s Claim Management system in construction companies in CEE countries. The Claim is a specific requirement of one contracting party for time extension for completion and/or additional payment that could be notified to the other contracting party on the basis of an event or circumstance that is foreseen in a contract clause or otherwise in connection with the contract. Claim Management (CM) is a system for monitoring and assessment of risks realization variations and their economic impact for the purpose of claim preparation and enforcement. It is a system for the early solution of problems, obstructions and complications. Claim Management starts to be crucial with the recent economic situation in construction. In case of a public procurement project, applicable law often affects change and claim procedures and causes many difficulties to all the participants of construction projects. The fact that the contractor is able to claim in conformity with the contract is a question of survival. Nowadays, it is very important to be able to implement CM in a construction company quickly and efficiently. In this work, the author seeks to discover an efficient way to implement Claim Management analyzing the relevant literature, theory and recommended types of Claim Management systems. In terms of research methods, the author chooses a qualitative method using a given set of questions to gain answers from experts within interviews, finally proposing a manual for implementation including implementation plan as the appropriate method.