Assessment of Challenges of Construction Claims Handling Process: The Case of Federal Road projects
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Date
2023-05-01
Authors
Kasahun Worku Lema
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
One of the issues a construction project might encounter is claim. Construction claim is essentially a demand made by one party to another. Claims will arise whenever a party alleges either an event has occurred or a right is denied or an obligation has not been performed that entitle a remedy to be requested. They may be classified by the related parties, rights claimed, legal basis, or characteristics of claims. Whatever the claim, the ultimate goal is to be qualified for an extension of time or/and additional payment. Studies show that public infrastructure projects have major claims and challenges. Accordingly, this paper analyses the current practice of claim handling process in federal road construction projects, challenges faced claim handling processes & the way it can be improved. The perception & experience of claim professionals involved in road construction projects was assessed via questionnaire & interview surveys and case studies were also used. Accordingly, the result showed that claim handling process in federal road projects has mainly four steps, which are identification, notification, substantiation and assessment and evaluation. There are also three main participants in a typical claim handling process involved in federal road projects; employer, contractor, and claims certifier/engineer/employer representative. Additionally, the result also revealed that many challenges faced during handling of claims. Inaccessibility of documents used to identify a claim, delay in notification claims timely were critical challenges of identification and notification process respectively. Incomplete records/report submission, unsatisfactory evidence to convince other party, poorly submission by contractor/lack of details and particulars were the top ranked challenges of substantiation and assessment process correspondingly. Developing good record keeping system, having good knowledge on terms and condition of contract document, take proactive claim management measure are ranked high by the respondents for improving the claim handling process. Furthermore, to support the survey result the research used some selected case studies and conduct in depth investigation and analysis. The finding expected to provide an important study results for client, contractor and consultant as well as professionals within the area of the study by easily identifying the core and sub-problematic areas.
Key words: Construction claim, Claim handling, Federal Road Project, Contract document