Mitigating construction disputes through effective claim management in large scale construction projects in Sri Lanka

Abstract

Given its diverse work disciplines, numerous stakeholders, and complex procedures, disputes are frequently encountered in large scale construction projects (LSCPs). Disputes significantly impact the project success, both in terms of time and cost when not properly managed. Therefore, it is prudent to identify the most common claims based on past experiences and their underlying causes for effective claim management. This study aims to investigate ways to improve the claim management process to mitigate disputes in LSCPs. In achieving the aim this study intended to review the causes of disputable claims, assess the impacts of such claims, investigate the challenges in effective claim management and proposes suitable strategies. Adopting a qualitative research approach, semi structured interviews were conducted with experts who have experience in LSCPs, thereby eleven (11) semi structured interviews were carried out. The collected data was analysed in terms of manual content analysis. Findings of the study revealed that, “variation orders” are the most frequent cause of claim. “Delay in completion of work”, “poorly written contracts”, “poor communication” and “unclear risk allocation” were also identified as significant causes of claim. “Poor record keeping system”, “queries due to the ambiguities of notices”, “poor presentation of facts” and “disagreements arising during negotiations” were the main challenges faced in management of claims. Thus, the analysis revealed the need of “concise and unambiguous contract documents”, “maintain proper documentation system” “proper communication” and “minimum variations” as the main strategies to mitigate construction disputes