Assessment of Claim and Its Impact in Building Construction Projects in Addis Ababa: The Case of Selected Grade 1 Contractors
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Date
2022-06
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Addis Ababa University
Abstract
The primary purpose of this study was to analyse claim in construction its cause and the effect it has on building construction by assessing three Grade one contractors, namely Elmi Olindo
Contractors PLC, Rama Construction and Bamacon Engineering, which have been in the industry for more than a decade. The specific objective of the study was to find the feasibility of the
procedure, if the procedure is being used properly and if there were any issues that are arising with this procedure. The scope of the study has been limited to the projects taking place in the 3
companies specifically in Addis Ababa. The study’s research design is descriptive and used both qualitative and quantitative. The sample size the study was done on is Eighty seven (87). The
sampling technique used is a purposive sampling. The survey questionnaire and interview is prepared based on literatures reviewed to asses claim and its management. The study revealed that
claim management requires knowledge and consciousness. Another finding was that claim resolution or handling took time. According to the mean and grand mean, the procedure of the
claim management in the industry was available, applicable and feasible. Respondents demonstrated a high level of awareness. Also, the results of the questionnaire show that the
procedures are being implemented, but not fully, as the time for claim response is taking longer than necessary and is not being resolved on a timely basis. However, according to the interviewees, even the procedures are not being followed, and there is still a lack of consciousness and awareness about claims and their management. The conclusion of the research is that awareness of claims and how aware companies are of them is low, and this needs to be addressed. Among the various causes of claim, it was identified and agreed that the majority of claims are caused by unrealistic schedules in the planning stage, variation works, and time intensive claim resolution, resulting in financial and time extension claims. The recommendations from this
study is that claims need to be identified at planning stage, awareness trainings need to be given to all the manpower that is directly handling the project works, Communication within parties throughout the project life cycle need to be worked on as it is a major key in prevention, Procurement strategies should be laid out