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Claims are increasingly becoming a norm in construction projects and thus an area that is attracting interventions through researches. This paper aims to establish causes–effects relationship of claims in construction projects.

This is correlation study type of study that attempts to establish causes–effects relationship of claims in construction projects. Significant causes and effects of construction claims were determined using one-sample t-test. To establish the relationship, the significant causes and effects of construction claims were correlated using bivariate correlation analysis.

Among the significant causes, variations, change of scope of the project and delay in completion of works have high level of significant positive relationship with five to six other causes and positive relationship with multiple effects ranging from five to six. Besides, among significant effects, delay in completion and delivering of construction projects, poor contractual relationship among parties and extension of time have significant positive relationship with multiple causes.

The findings of this study are limited to causes-causes relationship and causes–effects relationship of claims in construction projects. This means effects–effects relationship was not covered that could be an important area to investigate as some of causes and effects are at times termed interchangeably.

With reference to previous studies which have focused on determining the causes and effects of construction claims, the findings of the current study have specific contribution on claims management as it divulges the causes of constructions claims that have multiplier effects to the project as a result of their linkage.

The paper unveils causes of claims with multiplier effects to construction projects for project participants to devise strategies to minimize and consequently eliminate them.

The application of correct contractor selection strategies leads to the selection of a qualified contractor and, as a result, the on-time delivery of the project with the desired quality and within the predetermined budgetary constraints. For this reason, evaluating and qualifying contractors before reviewing the proposed prices has been considered an important issue. One factor that disrupts the project completion process and the failure to achieve pre-planned goals effectively is the occurrence of contractors' disputes and claims in projects. To this end, the present study explores claim-reduction strategies for selecting effective contractors in an uncertain environment to reduce possible problems.

The two-step grey data envelopment analysis (GDEA) approach was used to measure efficiency as a powerful tool in selecting efficient contractors during tenders. This approach can extend the applications of multi-criteria decision-making (MCDM) models. In other words, given some uncertainties, the unavailability of some data, and the problems with the DEA model, the two-step GDEA model was used to rank the contractors. The data confirmed the satisfactory outcomes from the selected model.

The preliminary assessment of contractors is a pre-tendering process and a step in categorizing contractors, excluding contractors lacking required qualifications, and selecting efficient contractors. At first, it will help the employer to exclude inexperienced and unqualified contractors, save resources and time, reduce threats, replace opportunities with threats, and reduce material and non-material costs during the completion of the project until the projects are put into operation. Consequently, this approach reduces claims to a minimum level and increases the organization's effective material and non-material profit.

Oil and gas plans and projects have a significant, sensitive, and decisive role in the economic, social, political, cultural, infrastructural, and all-round development of Iran; This is while most of the financial resources needed to implement the development and programs across the country come from oil revenues. Studies have indicated that despite the importance of these plans and projects, many of them are not completed successfully, and this causes irreparable losses to the country's economy and development in various fields.

1. The findings of this study can be used by organizations to select more effective contractors to assign projects and plans to them.

2. The preliminary assessment of contractors is a pre-tendering process and a step in categorizing contractors, excluding contractors who lack required qualifications, and finally selecting efficient contractors.

3. At first, it will help the employer to exclude inexperienced and unqualified contractors, save resources and time, reduce threats, replace opportunities with threats, and reduce material and non-material costs during the completion of the project until the projects are put into operation.

4. This approach also gives credit to the employer during the execution period and contributes to assessing unqualified contractors and reducing the temptation to hand over the project to an unqualified contractor but with a lower bid price.

5. Consequently, this approach reduces claims to a minimum level and increases the effective material and non-material profit of the organization.

6. Moreover, it provides an extra-organizational evaluation for contractors, motivating them to upgrade their capabilities and optimally allocate material and non-material resources, especially human resources.

The findings of this study can be used by organizations to select more effective contractors to assign projects and plans to them.

The preliminary assessment of contractors is a pre-tendering process and a step in categorizing contractors, excluding contractors who lack required qualifications, and finally selecting efficient contractors.

At first, it will help the employer to exclude inexperienced and unqualified contractors, save resources and time, reduce threats, replace opportunities with threats, and reduce material and non-material costs during the completion of the project until the projects are put into operation.

This approach also gives credit to the employer during the execution period and contributes to assessing unqualified contractors and reducing the temptation to hand over the project to an unqualified contractor but with a lower bid price.

Consequently, this approach reduces claims to a minimum level and increases the effective material and non-material profit of the organization.

Moreover, it provides an extra-organizational evaluation for contractors, motivating them to upgrade their capabilities and optimally allocate material and non-material resources, especially human resources.