Process Model for Administrating Construction Claims

Claims for additional costs and time extensions result from a variety of events occurring during the course of construction. To enhance the chances of success, contractors submitting claims must closely follow the steps stipulated in the contract conditions, provide a breakdown of alleged additional costs and time, and present sufficient documentation. On the other hand, project owners need to follow an overall comprehensive step-by-step procedure for tracking and managing the claims submitted by contractors. The paper presents a claims-management process that could be used by all parties involved in construction. The process identifies the major information-gathering and decision-making milestones as well as the notice and substantiation compliance checkpoints, which are critical to the development of defense arguments as claims are addressed. It further emphasizes the use of tools such as simulation, scheduling, productivity, and economic analysis and other modeling techniques in judging the level of justification and reasonableness of submitted claims.