Pandemics and construction claims : an investigation in to the covid-19 implications and resilience of the Sri Lankan construction industry

Abstract

COVID-19 has significantly impacted construction industries worldwide, leading to increased claims for time and cost. Improper claim management can lead to construction disputes. Previous research on Sri Lankan construction projects has focused on claims and the impact of pandemics on claims. However, there is a lack of a study on the significance of the effects of pandemics including COVID-19 from the perspective of claims, as well as the sufficiency and shortcomings of the current claims management practice in light of pandemics. The research aims to create a framework to minimise pandemics' effects on construction claims and enhance the industry's resilience. This study was carried out using a qualitative research approach. Accordingly, a comprehensive literature review was followed by expert interviews in order to investigate the applicability of literature findings to the context of COVID-19 in the Sri Lankan construction industry. Based on the results of NVivo code based content analysis, a framework for managing claims under a pandemic situation was developed. The study found that COVID-19 has had both positive and negative effects on construction claims in Sri Lanka. Industry practitioners have improved claims management systems, but losses to parties and challenges due to lack of express contractual provisions persist. Contractors’ claims were based on changes in law, Force Majeure, shortages, delays, cost changes, loss of productivity, variations, suspension or termination, and employer risks. The current claims management system is criticised for inadequacy in contract documents, parties, administration, and external factors. Strategies for preventing, mitigating, identifying, quantifying, and resolving pandemic-related claims are identified to minimise the impact on construction projects in Sri Lanka. Finally, a comprehensive claims management framework integrating claim prevention, mitigation, identification, quantification, and resolution strategies into disaster management cycle was developed to enhance Sri Lanka's construction sector resilience and cope with future pandemic challenges like COVID-19.