Claims Management: A problem-solving approach

Written by Lyle Charles

Construction delay claims can disrupt a project while costing the company money and diverting critical resources. To reduce construction delay claims, many companies are now taking a proactive approach. This involves identifying and mitigating risks that will minimize claim-related costs and optimize claim outcomes. However for those construction companies who are taking a reactive approach to construction claims, here are the steps to solve your claim and reduce claim costs.

Investigation and evaluation – Effective construction claims management involves assessment of the strengths and weaknesses of each party. This will involve assessment of all facts, by gathering all claim related material. If there are any loopholes in the information, the missing information should be gathered at this point.

Plan formulation – The plan should include the relevant facts and the legal theories that affect the claim. The costs of the plan should also be assessed, to hold these funds if payment is necessary.

Identification, allocation, and management of resources – A claim manager should be responsible for coordinating and implementing the claim resolution plan. This may involve hiring a consultant or an attorney, specifically for this purpose.

Periodic reassessment and resolution – When the defense proceeds, more information, and facts may come to light that will alter the views of the claim. Therefore, the contractor will have to reassess their position throughout this process. Constant monitoring during this final step will minimize claim costs and maximize claim recoveries.


Lyle Charles is a construction claims consultant who can cater to your construction project needs.

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