Construction claims are often part of a construction project. Therefore, an effective construction claims management planning process will help reduce the number of claims while helping to handle claims that are complicated with less legal fees and time wastage. A construction claim management plan will include some elements; they are as follows:
Purpose – Your plan should include a clear statement of why your plan was prepared and implemented.
Objectives – A clear list of the plan’s objectives will give the team direction and help them achieve their goals.
Strategy – This section will state the process that is involved in implementing the actions to achieve the stated objectives.
Contract Analysis – The contract analysis will identify the risks, opportunities and include the dispute resolution considerations.
Applicable Law Analysis – The key issues that need to be considered when making decisions regarding claims and disputes.
Detection / Recognition [KPI’s and Managerial Tools] – Key Performance Indicators (KPI’s) can be used to detect when claims can arise. These indicators will let management know in advance how claims can be reduced while ensuring the project is completed
Action Plans – If there are variations in the KPI’s, actions plans can be put in place to manage the situation.
Lyle Charles Consulting recommends that construction firms look at their construction management plan as a document that will help define and manage construction claims, not one that will eliminate them.
