Evaluation of Claim Management Practice Employed by Local Road Contractors in Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
The significantly increasing number of construction claims indicate the need for the implementation of an effective construction claim management. 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 base of an event or circumstance that is foreseen in a contract clause or otherwise in connection with the contract.
Construction claims have high impacts on the project’s cost and time performance that the contractor should establish the effective claim management in their organizations. Claim management is a system for monitoring and assessment of risks, variations and their economic impact for the purpose of claim preparation and enforcement. And it is also a system for the early solution of problems, obstruction and complications.
Claim management is becoming a crucial subject given the recent economic situation in the construction.
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 claim management in a construction company quickly and efficiently. This research aimed at presenting the key concepts of construction claims, and construction claim management, focusing on the contractor’s point of view and the researcher sought to discover current practice employed by Ethiopian local road contractors in claim management analyzing the relevant literature, theory and recommended claim management process. In addition, a questionary survey was done to assess the efficiency of the contractors in managing their claims. Also as a method of improvement measures the researcher tried to set forth various mechanisms which can assist in the advancement of the current practices of claim administration or management.
In terms of research methods, the author chooses a quantitative method using a given set of questions to gain answer from experts, and finally the result from this research can help the contractors improve their weakness and maintain their strengths of their claim management process.
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Keywords
Road Contractors in Ethiopia, Claim Management