Claims Management in Construction & Infrastructure Projects

Subcontractor disputes in construction projects can significantly impact both financial overhead and the maintenance of relationships. Therefore, effective management of subcontractor disputes is of critical importance. The first steps for effective management of subcontractor disputes start with proactive measures as early as project outset. In the pre-construction phase, contractors should

The construction industry can be filled with project complexities, often leading to claims and disputes. Some of these disputes can be resolved with mediation, which is an early-stage Alternative Dispute Resolution (ADR) technique. Mediation offers a collaborative and problem-solving approach that considers the case’s commercial aspects as well as the

Construction dispute resolution has become a new milestone for project success. As construction projects accelerate, claims and disputes can arise affecting completion. Dispute resolution processes address claims to resolve conflicts among stakeholders and bring projects to completion beyond physical construction. An understanding of the impacts and causes of construction disputes

The choice of a construction dispute resolution method can significantly impact the outcome of a construction dispute. Two dispute resolution methods—litigation and arbitration—are described below. Litigation involves resolving disputes through the court system. In this method, a judge or jury makes a final decision on the dispute based on legal

Construction disputes may be unavoidable. However, excessive prolongation of construction disputes can lead to considerable costs, delays, and the damaging of relationships between parties. Therefore, the ability to effectively negotiate and settle construction disputes is greatly important not just for the individual claim but also for the project and parties

In the construction industry, public and private projects differ from each other not only in their procurement process and contractual requirements but also in their dispute resolution methods. In general, public projects are subject to more laws or regulations, whereas private projects offer more flexibility. Even at the outset of

Traditional challenges in construction claims management often involve manual processes and extensive paperwork. Such manual processes consume valuable time while increasing errors and data discrepancies, and contributing to communication gaps. To overcome these challenges, construction industry stakeholders can embrace digital solutions that streamline processes, enhance communication, and provide real-time visibility

Effective documentation in construction claims serves as a comprehensive record of a project’s lifespan. The documentation provides a real-time record of progress, helping proactively anticipate and address potential disputes while enhancing project transparency and accountability. When projects’ events develop into claims and disputes, construction documentation serves to substantiate parties’ positions.

Despite all proactive measures, claims are inherent to construction projects. Further, there are many types of construction claims that address the various disruptions that may occur on a project. Some common types of construction claims are delay claims, variation claims, and defective work claims. 1. Delay Claims Delay claims address

Effective financial management in construction projects involves meticulous planning and execution to be able to mitigate unforeseen challenges. To manage unforeseen expenses in construction projects, teams should conduct thorough risk assessments, maintain a contingency fund, and establish clear communication channels to quickly address and resolve emerging issues. Projects could experience

Conflicts are inherent due to the complex nature of construction projects and the different interests of involved parties. Failure to manage these conflicts may prompt one party to submit a construction claim formally. Should these claims remain unresolved, they evolve into construction disputes. This article provides an introduction to construction