ABSTRACT
This chapter considers the conflict that occurs after the contract has been formed and why this conflict should be so evident in construction contracts. Indication of conflict can be cost and time over-run. Claims are clearly correlated with cost and time over-run. Factors involved in claims procedure are shown to be correlated with the number of claims, value of claims as well as cost and time over-run. The Contractor's capabilities can have an influence on his performance in a project, particularly his management of claims. To study the effect of the issue on the claims occurrence in a project, five key procedures were identified: issue of variation orders; approval of work or materials; giving decisions regarding claims; approval of shop drawings; and preparation and issue of payment certificate. The extent to which the Engineer adhered to the conditions of contract when performing them was tested for possible correlation with conflicts.
