Claims management in the Egyptian industrial construction sector: A contractor's perspective

Abstract

Purpose

This research aims to provide a better insight into the status of claims management in general, and change order claims in particular, from the contractor's perspective with respect to the Egyptian industrial construction sector, as they proved to be the main cause of claims in this sector.

Design/methodology/approach

A questionnaire survey discussing the most persistent issues of claims management in general, and change order claims in particular, was conducted on a selected sample of construction industrial companies.

Findings

The results demonstrated that claims management in the Egyptian industrial sector has been suffering from a variety of obstacles, including lack of proper notification procedures in public contracts and poor documentation management. Change orders had been actually lost due to poor documentation. Oral change orders were present in approximately 76 percent of the projects; half of which resulted in loss of rights due to improper documentation, which was largely attributed to the lack of contract awareness of the site team, and to the “fear of consultant phenomenon”.

Practical implications

The paper presents several recommendations for improving claims management including: the formation of a standard form of contract general conditions for the Egyptian industrial sector, and applying a methodological approach for change orders quantification.

Originality/value

The increasing number of international companies contemplating construction projects in Egypt, and the significant problems with regards to claims propagation and management, addressed the need to conduct such a study, which targets one of the most challenging areas in the Egyptian construction industry.

Citation

Hassanein, A.A.G. and El Nemr, W. (2008), "Claims management in the Egyptian industrial construction sector: A contractor's perspective", Engineering, Construction and Architectural Management, Vol. 15 No. 3, pp. 246-259. https://doi.org/10.1108/09699980810867406