Construction projects are getting complex depending on the nature and rigidity of the projects. Every contractor, subcontractor, and client operating in this environment has one objective- to attain their own goals and expectations. The ultimate motive is to maximize their benefits.
Under such a scenario, it is not uncommon for conflicts to arise since each has diversified goals. As such, unless you can manage these disputes effectively and well within time, it not just gives rise to ample opportunities for claims, but the project tends to get deferred.
So, let us find out how you can draw the benefit of using a claim management system for construction projects. Look at the facts below.
5 Advantages of having a claim management system in place
From what we have read above, it can be safely said that claim management is an inevitable process. If you have a sound claim management process in place, you get to reap the following benefits-
- Every process in the tenure of the project is well documented.
- There is a lot of paperwork that requires careful analysis and relevance. The same is achieved by proper claim management system.
- By identifying and addressing any outstanding issues that can be resolved through effective claim management, you can prevent encountering impasses, conflicts, and holdups.
- The system prevents the loss of resources &
- A micro-level Claim Management system can assist you in evaluating your cash cost control and cash flow system, as there is always room for assessment and improvement.
- Only a robust Claim Management system can stand most crucial towards protecting your project from unexpected disputes that can disrupt both your overall management service and important organizational activities.
Since the arena for construction projects is huge, the ones mentioned above are just a few of the pros of having a claim management system in place.
But we must also be aware of the circumstances that may give rise to claims. By doing so, these pitfalls can be avoided for optimum management of the projects as far as possible.
10 scenarios that give rise to claims in construction projects.
We know that a construction agreement contains clauses, terms, and conditions that the parties involved are expected to abide by. But this is not what happens always. Claims can arise under the following instances-
- The scope of the project undergoes lateral change due to which there is an alteration in contractually bound scope.
- Delay in handover of site or delay in site possession.
- There are lacunae in drawing plans and engineering layout/design.
- Soil composition is found to be faulty or unanticipated conditions at the site.
- In the event of poor construction productivity
- Statutory clearances get deferred.
- Unwarranted contract termination.
- Presence of prolongation period.
- Disagreements over payment for work completed, materials supplied, or other related expenses.
- Disagreement between the owner and contractor regarding the scope or cost of a change in the project
So, if you find that any one of the conditions above is being fulfilled, you can expect claims to arise in a construction project.
The root cause must be addressed. Also crucial is to establish a channel of effective communication between parties. Offering cheaper or affordable solutions that will not burn a hole in your pocket. And all this can be taken care of by us at Contract Square Pvt. Ltd.
We always welcome ideas and solutions from our clients. And upon evaluation of its appropriateness, we employ the same. So, we believe in working in tandem with our clients. We prefer offering solutions by weighing the pros and cons of every situation while at the same time adhering to the norms of the industry.
If you would like to share your worries and want us to help you with our unique solutions, we are just a call away.
For more information on how we may offer our assistance to you in contract management and agreement, you can reach us at firstname.lastname@example.org or call +91 9903023893.