ABSTRACT
The project manager first submits a change order proposal (COP) for the contract adjustment. If the project owner and general contractor's (GC's) project manager (PM) mutually negotiate a COP, a formal contract change order is drafted and a claim will not be necessary. Procedures for processing claims typically are prescribed in the contract. The owner or the architect formally responds to the contractor's request agreeing, agreeing in part, or rejecting the contractor's claim. If the GC's PM does not agree with the response, the claim becomes a contract dispute, and the dispute resolution techniques prescribed by contract are used to settle it. Formal partnering and team-building techniques and others have been adopted by many in the construction industry in an attempt to reduce the number of claims and disputes. The frequent meetings and the issue escalation system are used to resolve issues at the project level in a timely manner.
