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1 – 10 of over 105000Majid Parchamijalal, Saeed Moradi and Mohsen Zabihi Shirazi
Claim formation is a fact and a regular occurrence in construction industry projects and often leads to a waste of money and time for organizations. Organizations can, however…
Abstract
Purpose
Claim formation is a fact and a regular occurrence in construction industry projects and often leads to a waste of money and time for organizations. Organizations can, however, reduce and control claims by promoting an integrated claim management system and improving productivity in the results of the claims. Establishing a claim management office is one of the ways to help organizations achieve this.
Design/methodology/approach
Based on library research, expert opinion and analysis of organizations' contracts as case studies and identifying the root causes of the claim, this paper proposes a claim management office maturity model and determines its levels.
Findings
This paper proposes a claim management office maturity model and also determines its levels. The general structure of this model is based on three parameters: “characteristics of each level,” “requirements of each level” and “transition period of each level” in five levels, where the first level is the most basic level and level five is the highest level of the implementation of a claim management office in the organization.
Originality/value
It can be clearly emphasized that this research is one of the first research studies that has dealt with the issue of claim management office in the construction industry and has proposed the model of maturity and development of claim management office in the organization. The use of numerous and experienced experts in achieving the results and case organizations to develop this research has increased the value and credibility of this research. This study also helps to improve the level of claim management in construction industry organizations so that these organizations can implement each level of claim management maturity model in the organization according to their competence and need for claim management. And by implementing it correctly, solve or reduce the problems of claim management in the organization and their projects.
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Majid Parchami Jalal, Tayebe Yavari Roushan, Esmatullah Noorzai and Maryam Alizadeh
This study aims at introducing a claim management model based on building information modeling (BIM) for claims that can be visualized in BIM models.
Abstract
Purpose
This study aims at introducing a claim management model based on building information modeling (BIM) for claims that can be visualized in BIM models.
Design/methodology/approach
Based on the results of a questionnaire survey, 10 claims were identified as claims that can be visualized in BIM models (named hard claims in this study). Then, a BIM-based claim management model was developed and used in a case study.
Findings
A BIM-based claim management model is represented. The claim management process through this model consists of four steps: (1) extracting project information, identifying conditions prone to claim and storing them into a relational database, (2) automatically connecting the database to building information model, (3) simulation of the claims in building information model and (4) final calculations and report.
Practical implications
The proposed model can provide benefits to parties involved in a claim, such as early identification of potential claims, large space for data storage, facilitated claim management processes, information consistency and improved collaboration.
Originality/value
There are a few studies on providing solutions to claim management based on BIM process. Hence, the original contribution of this paper is the attempt to set a link between BIM and claim management processes.
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AMR A G Hassanein and Waleed El Nemr
The term claim has become of paramount significance in construction projects worldwide. This research is targeted at providing a deeper insight of the status of claims management…
Abstract
The term claim has become of paramount significance in construction projects worldwide. This research is targeted at providing a deeper insight of the status of claims management in general and change order claims in particular with respect to the Egyptian industrial construction sector, as change orders have proven to be the main cause of claims in this sector. A questionnaire focusing on persistent issues noted in construction management literature within the past fifteen years was addressed to a selected sample of Egyptian construction industrial projects. The results furnished by the sampled projects demonstrated clearly that claims management in the Egyptian industrial construction sector has been suffering from a variety of impediments, including lack of proper notification procedures in public contracts and poor documentation management. The results indicated that oral change orders were present in nearly 76% of the sample projects and that half of these oral changes resulted in loss of rights due to improper documentation, which could be attributed to the lack of the contract awareness of the site team and to the “fear of consultant” phenomenon. The main cause of change orders was categorised by approximately 67% of the respondents as the additional scope of work, which was largely attributed to the fast track nature of the industrial sector. The research also identified several factors associated with time and cost increases of the sampled projects, among which were: private ownership and unit rate contracts. Finally, several recommendations for improving claims management are put forward. They included: the formation of a unified form of general contract condition for all the Egyptian industrial sector; the use of information technology systems in lieu of traditional filing procedures and the inclusion of a float‐sharing provision in contracts.
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Z. REN, G.J. ANUMBA and O.O. UGWU
Disputes are now considered endemic in the construction industry. They often arise from the poor resolution of claims in the course of construction projects. Efforts have been…
Abstract
Disputes are now considered endemic in the construction industry. They often arise from the poor resolution of claims in the course of construction projects. Efforts have been geared towards reducing the incidence of claims. These efforts are of two kinds: those that seek answers from basic principles and legal issues at the pre‐construction phase and those that attempt to solve the problems through claims management procedures at the construction phase. This paper reviews the developments in claims management and highlights the deficiencies in current claims management approaches. It focuses on the need for improvement of the efficiency of claims negotiation and suggests the use of multiagent systems as an approach to achieve it. The potential benefits of the suggested approach are discussed in the concluding section of the paper.
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Amr A.G. Hassanein and Waleed El Nemr
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…
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.
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Amr A.G. Hassanein and Waleed El Nemr
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…
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.
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This study was motivated by a belief that existing knowledge on management of a contractual claim in international contracting practice is different from a standardised local…
Abstract
Purpose
This study was motivated by a belief that existing knowledge on management of a contractual claim in international contracting practice is different from a standardised local practice. The paper is aimed at building competence for managing contractual claims in a standardised practice.
Design/methodology/approach
Comparative studies of British and Finnish contracting practices were used to determine the reason why claims are not pronounced in a standardised practice. Empirical study via direct interviews and questionnaires of a Finnish‐based contractor operating in the Russian markets was used. The players are three‐dimensional in nature where the client, consultants, and contractor come from different countries/practices and two of the projects studied were joint ventures.
Findings
The findings show the effects of: legal system, procurement methods, standardised practice and size of the market on the management of contractual claims. The remedial measures suggested include: operational management, i.e. learning through personal contacts, and management competence development of employees by learning through proper communication and education programmes in a form of continuing professional development.
Originality/value
Management of claims in the construction industry is vital to a successful implementation of the project. It brings about a fair dealing between the project owner and the contractor, improves contractor's cashflow and discourages abandonment of project and disputes. Lack of knowledge in managing claims constitutes a threat to successful implementation of project. The engagement of an expert and knowledge transfer through joint ventures/partnerships are suggested as solutions.
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Adnan Enshassi, Sherif Mohamed and Said El‐Ghandour
During the past few years, only a limited number of construction projects in Palestine were completed on time; indeed many of these projects had been delayed for reasons believed…
Abstract
Purpose
During the past few years, only a limited number of construction projects in Palestine were completed on time; indeed many of these projects had been delayed for reasons believed to be outside the control of both the contractors and owners. Such delays have given rise to many claims and conflicts. The aim of this paper is to investigate this widespread phenomenon, and its associated problems, from the perspective of the local contractors.
Design/methodology/approach
The paper reports on a questionnaire‐based research investigation targeting local contractors with a focus on critical problems associated with the process of claim management, starting with claim identification, through to claim notification, examination, documentation, presentation, and negotiation.
Findings
The paper presents the survey results and main findings which indicate that: lack of site staff awareness to proactively detect claims, inaccessibility or unavailability of relevant documents, and conflicts arising during owner/contractor negotiation are all critical problems associated with the process of claim management.
Originality/value
The outcome of this research will assist local contractors in understanding the critical problems associated with the process of claim management; thus minimizing the number of, and cost associated with, claims and conflicts.
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It is necessary and useful to differentiate destructive from constructive conflict and avoidable from necessary claims; and also to minimize disputes arising from unresolved…
Abstract
It is necessary and useful to differentiate destructive from constructive conflict and avoidable from necessary claims; and also to minimize disputes arising from unresolved conflict and claims in construction projects. This paper analyses such needs and proposes means of meeting them through an appropriate classification of construction claims; an estimation of their relative significance in terms of magnitude and frequency; and an identification of the proximate and root causes of the significant claims. A hierarchy of such claims, proximate and root causes is presented, based mainly on data collected from 61 projects and on 46 responses to questionnaires in Hong Kong. Measures of the relative significance of the claims categories are also presented. The results are reinforced by observations from parallel studies in Hong Kong and elsewhere, as well as from the literature. Strategies are suggested to avoid the avoidable and mitigate the unavoidable or unavoided claims, through controlling the controllable causes. Management focus is also recommended on controlling the causes of those categories of claims and disputes that are seen to be significant in terms of higher impact and/or probability of occurrence.
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Ratnesh Kumar, K. Chandrashekhar Iyer and Surya Prakash Singh
In construction management, risks and claims are treated separately, but several studies tacitly acknowledge a strong link between the two. In this context, this research intends…
Abstract
Purpose
In construction management, risks and claims are treated separately, but several studies tacitly acknowledge a strong link between the two. In this context, this research intends to investigate whether risks and claims have a causal relationship? Based on this causal relationship, a claim-based risk assessment model (C-RAM) is developed to quantify occurrences and cost implications of risks using project data.
Design/methodology/approach
First, the causal relationship between risks and claims is established through a conceptual framework for content analysis of the literature on risk management (RM) and claim management (CM). Then, a C-RAM is developed based on the content analysis of 234 claims from 24 settled arbitration awards.
Findings
Risks and claims are found to be two stages in the same chain of uncertain events that affect projects, subsequently revealing a causal relationship between risks and claims. Due to this causal relationship, claim documents become a potential source of risk information from past projects. Proposed C-RAM quantifies occurrences of risks with three parameters: number of projects in which a risk occurs, number of ways in which a risk occurs, and number of claims a risk causes if it occurs. Also, cost implications of risks are quantified as percentage of contract sums for interpretation as tangible values.
Research limitations/implications
Though C-RAM is applicable to all types of claims, the results in this paper are based on impacts of risks in past projects that caused claims and reached to arbitration stage.
Practical implications
The causal relationship between risks and claims will encourage integration of knowledge on RM and CM which is currently treated separately. Practitioners can now visualize claims as cost implications of risks that occurred in projects. Further, C-RAM makes risk assessment (RA) more objective by quantifying the cost implications of risks as percentage of contract sums which can be readily used for contingency estimation.
Originality/value
The relationship between risks and claims, and the potential of claim documents as a source of project risk information, can initiate a new paradigm in RM research based on project data.
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