ABSTRACT
Construction claims are common in construction projects around the world. Claims are an important source of disputes between contracting parties in construction projects. Generally, construction projects involve a number of business parties, extend over a long period of time and are uncertain, complex and risky. Moreover, construction projects require extremely complex designs, detailed plans and specifications, several inter-related activities/work packages, high-risk construction methods, effective management, skilful supervision and close coordination. In a construction project, a multitude of stakeholders and activities to be completed within a specific time period with specified quality and within budget, make it dispute-prone. Disputes left unresolved in construction projects become formal claims. Several variations bring about a claim for additional payment, if accepted. If the parties are unable to agree to a claim, a dispute arises. With well-planned and documented negotiations, a settlement of claims can be reached. This chapter discusses types of construction claims, claims between parties, the management of claims, claim documentation, claim presentation and negotiation and settlement of claims.
