Claims management in the Egyptian industrial construction sector: a contractor's perspective
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 5 September 2008
Abstract
Purpose
This research aims at providing a better insight of 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 per cent 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 presented 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 study that targets one of the most challenging areas in the Egyptian construction industry.
Keywords
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. 5, pp. 456-469. https://doi.org/10.1108/09699980810902749
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited