10
Claim Management
Copyright © 2018. John Wiley & Sons, Incorporated. All rights reserved.
10.1 Claim management
In construction projects, it is very important to solve problems that can influence
price or time for completion as soon as they are encountered (or even earlier to avoid
or mitigate the consequences) while all equipment, human resources, and witnesses
are still on site. Negative consequences of specific hazards are allocated in the form of
a risk to the parties by contract. If a risk is allocated to one party, the other party may
usually claim additional payment or extensions of time after such risk is realized.
It is common in international construction contracts for parties who consider
themselves to be entitled to a claim to be under a duty to notify it. This notice can
draw attention to the problem. The duty to notify creates a natural responsibility
to keep contemporary records. This brings with it a higher probability that faster
solutions will be implemented (to mitigate consequences) and problems resolved
in a timely manner. Claim management is next to variation management a specific
part of change management within the general project management duties related
to contractual aspects of the project also called as contract management.
A structured claim management system also prompts the contract administrator
(the engineer), the employer, the contractor, and others involved in a construction
project to respect and take claims seriously. They must follow the contractual claim
procedure, document events, report, and quantify the consequences by paying more
attention to the claims and related site inspections and investigations.
The claim management is, in the most general sense, created by being able to identify, document, and quantify a claim. It is strongly recommended to commence claim
preparation and administration from day one, that is, from receipt of the tender
invitation by the contractor. Well-experienced contractors, engineers, and employers prepare themselves for every individual project prior to its commencement by
using a set of checklists, organizational charts and sample forms of letters that facilitate future claim management.
The principles of claim management are also discussed in case law. For example in
Attorney General for the Falkland Islands v. Gordon Forbes Construction Limited and
International Construction Contract Law, Second Edition. Lukas Klee.
© 2018 John Wiley & Sons Ltd. Published 2018 by John Wiley & Sons Ltd.
Klee, Lukas. International Construction Contract Law, John Wiley & Sons, Incorporated, 2018. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/lau-ebooks/detail.action?docID=5448169.
Created from lau-ebooks on 2023-04-09 20:02:56.