Steps to Manage Construction Claims Effectively

The construction process involves many resources like subcontractors, contractors, labors, materials, and equipment. Lack of communication and coordination between the vendors and teams can cause construction disputes during the project.

Construction disputes can result in claims which are a demand for something due, mostly money. A construction claim is not ‘change order’ as it is a type of request by a party – the other party may or may not be in agreement to the claiming party. So, when both the parties agree, the claim turns into a change order. Otherwise, companies need to apply ways to resolve construction claims.

The most effective way construction claims management is to hire a Quantum expert with proper qualification and experience to resolve disputes and construction claims. The expert applies different techniques to manage requests in construction. 

Read on to know some steps to manage construction claims in UAE.

Steps of Effective Construction Claims Management

Effective claim management process involves different stages. An expert takes these steps carefully to leave no loopholes in resolving the issues. He analysis all the relevant files, surveys the site and hold meetings with the concerning parties before passing his solution. Here are some of the steps used in construction claims management:

Demand the File and Supporting Documents

First of all, demand the claim file and all the supporting documents from the party. Review each page of these documents to postulate the legal basis of the construction claim. Be highly careful to note down all the points mentioned in the claim.

Now, inspect the site to note that the details mentioned in the claim are correct or not. To do this, collect all the information about soil conditions, utilities, subsurface conditions, weather, equipment, and material.

Analyze the Proofs

The claiming parties submit proofs with the documents. At this stage of construction claims management, analyze these proofs to determine the truth. Also, match the submitted proofs with the information you collected from the site.

While analyzing proofs, make sure they are clear, well-structured and without ambiguity. Ask for clarifications about uncertainties and if the party fails to provide you proper justification or clearance, mention it to the concerning party for their information.

Evaluate the Bid’s Breakdown

Next comes evaluating the bid’s breakdown and underlining all the demands given in the contract. Make sure the needs mentioned by the contractor are sufficient and the breakdown of the proposal is correct.

Also, evaluate all the facts carefully. These facts include site reports, documents and all the bills and receipts of the resources used at the site. Make a list of the points that can be refuted or confirmed. This step is taken to obtain a deeper understanding of all the facts and figures about the project.

Prepare your Report

Compare the two schedules – the existing and the submitted schedule by the party. After that, evaluate the similarities and discrepancies in these two schedules. Now, prepare your report which should be based on your productivity analysis of the supporting files and documents. Compare the productivity analysis with the actual performance reports.

Afterward, use daily reports to calculate the overhead costs. It will help you to determine the strengths and weaknesses of the construction claim. If you find loopholes in the request (claim), you are in a position to refute it; and if the request is justified, prepare and execute the action plan to resolve the claim.

Bottom Line

Construction claims management need technical expertise, background knowledge and sound knowledge of the construction industry. While companies try to fix the claims themselves, but it is always advisable to hire a professional.

Opt for the services of construction claim consultants to help evaluate the claims more effectively. The analyst can give you the best solution based on his experience and qualifications.