The Definitive Handbook for Managing Construction Claims

Claims Management

Risk prevails in every construction project that you undertake. As such, you must also be prepared and well-equipped to counter the same. We know the downside of a claim when it arises. Here, let us find out a few tips on how you can optimize the claim management solutions to reap the benefits judiciously.

What are the risks of construction claims?

Several risks are associated with construction claims. Let us know them in brief.

  • Delayed project timeline – The completion of the project may be hampered. There are many reasons for the same, however, there are instances where it might also lead to litigation.
  • Increase in the cost of the project– Due to delayed projects, additional costs might pile up which the owner will bear.
  • Defects- These consist of defective materials for construction, errors in design specification, and poor workmanship.
  • Tarnished image – When a construction claim arises, it adversely affects the reputation of the company. This is because it becomes public information. This is detrimental because future leads or prospective clients will find out that the builder has been involved in disputes.
  • Blacklisted – As a worst-case scenario, many regulatory bodies and authorities in the construction sector blacklist the companies. At its worst, the company might be forced out of business.

Remember, most important is to carry out thorough construction claim analysis, before you work out claim management solutions. So, here are a few tips that will help you to make the construction claim management solution work to your advantage.

5 Tips for optimum construction claim management solutions

Check out these tips below-

  1. You must bid realistically
    When contractors bid, many will quote a lower price. This can be tricky. Instead of chasing cheap and low-priced bids, be realistic. The amount you save upfront might likely skyrocket at a later date due to the fault of the bidder.
  2. Do not claims on the backburner
    If there is an instance when a claim arises midway through the project, you might be tempted to deal with it when the project is completed. However, address it right there since timely management of construction claims can help you to ward off unpleasantness.
  3. Maintain records in details
    When it comes to maintaining records, document management is handy, not just for the contractor but also for all parties involved. Opt for an integrated data storage facility that can keep records centralized from multiple information sources. Not just that, it will also ensure that every member of the team can access the data whenever possible and required.
  4. Keep a tab on the progress of the project
    If you are always alert about the progress of the project, chances are that there will not be any kind of lacunae in the process. As an English phrase goes, “Prevention is always better than Prevention”. As such, if you arrest any kind of fault while the project is underway, it will not have far-fetching consequences.
  5. Incurring expenses on risk management solutions makes sense
    Last but not least, so that you can be relaxed that you have not kept any stones unturned for the effective and efficient progress of the project, seek professional assistance.

To ensure that you get the optimum out of your construction claim management strategy, you can approach us at ContractSquare. For more information and assistance, reach us at or call +91 9903023893.

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