As a construction contractor, it’s important for you to understand the importance of claims management. Not managing construction claims can affect your profitability by causing delays, additional costs, and reduce the impact of claims on your bottom line. Claims management can also help to resolve disputes in a way that preserves relationships and maintains goodwill. Here are some useful FAQs and their answers on claims management and how to choose a claim management company:
Question: 1 What types of claims can be managed?
Construction claims management can cover different types of issues, such as:
- Disruption or delay of the construction schedule
- Changes in the work scope
- Omissions or design errors
- Unforeseen site conditions
- Damage or loss to equipment or material
- Underpayment or non-payment
Question: 2 Why is construction claims management important?
Construction claims management is important because it can help to ensure that disputes are resolved in a timely and cost-effective manner. This can help to prevent delays and additional costs, and can help to maintain good relationships between the parties involved in the project.
Question: 3 How do I choose a claims management company?
When selecting a claim management company, it’s essential to do your research. Here are some factors to be considered while choosing a claim management company:
- Expertise: Every company is different, so it’s essential to consider the expertise and experience of each. Ensure that the claim management company has knowledge in your field, as well as a proven track record backed by references.
- Communication: Choose a company that is responsive and communicates clearly and effectively. At the time of hiring a company, do ask how often they plan to update you.
- Cost: Consider the fees and costs associated with the claims management process, and choose a company that provides value for money.
Question: 4 Why should I hire a claim management company?
With the complexities of managing claims, it can take time to ensure a swift and cost-effective resolution. This is where a claim management company can be of great benefit. They have the expertise and experience needed to help determine if you should pursue a claim and develop strategies for resolving disputes. A claim management company can provide time-saving guidance when navigating the process, allowing you to focus on other aspects of the project. When more formal negotiations are necessary, they can also take on this responsibility.
Question: 5 What should I expect from a claims management company?
Working with a reliable claim management company is important to protecting your rights in a construction dispute. A good claim management company will provide effective services, including
- Analysis of the facts and circumstances of the dispute.
- The review of contract and project documents to identify potential claims.
- Negotiation with the other party to reach a resolution.
- Preparation of the claim and supporting documentation.
- Representation at mediation, negotiation and arbitration if necessary.
- Perusal of all documents including correspondences and Contract Document
- Preparation of Delay Analysis
- Preparation of Monetary Claim
- Drafting of various notices as per Dispute Resolution Mechanism under the contract
- Preparation of all documents and advisory for Dispute Redressal Committee (DRC)
- Preparation and filing of Statement of Claim (SoC) before Arbitral Tribunal
- Review of Statement of Defense and Counter Claim and highlighting points to be addressed
- Preparation and filing of Reply to Counter claims
- Preparation and filing of Rejoinder before Arbitral Tribunal
- Perusal of Sur-rejoinder and highlighting points to be addressed
- Preparation and filing of Admission and Denial of Documents
- Preparation and filing of draft issues
- Preparation and filing of Witness Affidavits
- Preparation of questions for cross examination by Counsel / Sr. Counsel
- Preparation and filing of Written Arguments
- Providing consultation and assistance during Arbitration Sittings.
Question: 6 What can I do to reduce the risk of construction claims?
You can take many steps to minimise the risk of construction claims, such as:
- Carefully understanding and reviewing the project and contract documents.
- Maintaining continuous and strong communication with involved parties throughout the project is also essential.
- Proactively documenting any variations to the scope or expected outcomes can help you head off potential issues down the road.
- Addressing problems immediately, before they further escalate or impact performance or output, can help ensure an overall successful outcome.
Are you looking for claims management services?
Contract Square Pvt.Ltd is a reputed claim management company. As of now, we are managing contracts worth around Rs 24 billion. We have ensured successful arbitrations to the tune of over Rs 12 billion. We follow a systematic process to document, evaluate, analyse and eventually settle construction claims. For more information, contact us firstname.lastname@example.org or call +91 9903023893.