Claims In International Construction Contract: A Case Study Of Ethiopia

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Addis Ababa University


Claims in international civil engineering projects sometimes will have impact on implementing the contract successfully., in order to observe and evaluate the contract claim situation in Ethiopia, and give guideline to all the contractual roles to settle the claims comfortably, this paper devote the research and literate review to find the key problems in contract claim management and give recommendation accordingly. With this focused objective, this paper presents a research analysis based on randomly selected data from international construction organization that work in Ethiopia. The contract claim case studies analyzed by sampling survey scientific research method that follows a research strategy of specific to general. In the beginning, the paper analyzes the elements of contract claim administration, and then provides the general overview of the contract claim. Finally, it numerates the claim causes usage through cases studies selected in Ethiopia under different contract condition of Mo WUD, PPA and FIDIC. In addition to these discussions, analysis of other secondary data and recommendations forwarded to explain how claims should handle properly. During the thesis research period, there were 15 simple random selected projects have been studied as a case studies. From studied projects, the time extension in average, exceed 117.7% of its original contract completion time and the cost compensation increase 34.8% comparing to its initial contract value. Thus, the main causes of the majority contract claim problem lies on the failure in contract claim management and on unforeseen circumstance like variation, adverse climate, right of way problems, etc. Finally this thesis contributes to the improvement of contract claim management in Ethiopian construction industry and open ways for further researches related to claim management. Key words: claims, international construction contract, contract claim management



claims, International construction contract, Contract claim management