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Abstracts
Governments invest millions of dollars annually in enhancing the
infrastructure of the country through the construction of new facilities.
However, construction projects are complex, involve various parties,
require the integration of different components, and have long construction
periods.
Consequently, claims are prevalent in the construction industry, making it
the subject of more claims than any other industry. Claims lead to delays
in project completion, which require significant time and resources to
resolve and cause adversarial relationships among the parties involved.
To prevent, minimize, or resolve claims amicably, identifying the common
claim types and their causes is crucial. This Document presents the
outcomes of a pilot study that investigates the types and causes of
construction claims. It also suggests ways to prevent and reduce claims in
construction projects.
The findings of this Document can help construction firms avoid the primary
causes of claims, minimizing delays and cost overruns in future
construction projects.

Introduction
A construction claim refers to a request made by either party, usually the
Contractor, for compensation for damages caused by the other party's
failure to fulfill their contractual obligations.
Such compensation often comes in the form of additional payment or an
extension of time (EOT). Construction claims are viewed by many project
participants as one of the most concerning and unpleasant events that can
occur during a project.
The intense competition in the industry has resulted in contractors bidding
for projects with minimal profits to remain competitive. Moreover, as
projects become increasingly complex and risky, contractors are under added
pressure to complete them with limited resources and profits.
Also, Tender design drawings can be a cause of claim in a project if they
are inaccurate, incomplete, or ambiguous. When contractors rely on these
drawings to prepare their bids and subsequently construct the project, any
errors or discrepancies can result in costly and time-consuming disputes.
Therefore, it is unsurprising that the number of claims within the
construction industry is on the rise.
Having knowledge about the various types of construction claims is crucial
for owners to recognize potential claims situations. This understanding can
help prevent or minimize claims and ultimately protect owners from
incurring losses while assisting in recovering compensation.
In this Document, different types of construction claims are discussed.
These types of claims are often interrelated, frequently occurring, and may
pertain to a particular situation. It is essential to note that some of

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these claim types may be specific to a particular circumstance, such as
changes in the scope of work or delays in project completion.

By understanding the different types of construction claims and their

causes, owners can proactively address potential issues before they
escalate into more significant problems.
This can involve implementing clear contract terms, effective communication
channels, and detailed project planning and management.
By taking these steps, owners can reduce the likelihood of claims arising,
ultimately minimizing the potential for losses, and protecting their
investment in the project.
Overall, having knowledge of construction claim types can help owners
recognize potential claims situations, take appropriate measures to prevent
or minimize them, and protect themselves from incurring losses while
maximizing the project's success.

1. Claims Due to Contract Documents

Clear design, scope of works, and specifications are crucial to preventing

future claims or design alterations in construction projects.
a. A well-written design and scope of work document will establish clear
expectations for the project, including project goals, budget,
timeline, and performance standards. This document sets the
foundation for the project, providing a clear roadmap for all parties
involved.
b. A well-written specification document is equally important, as it
provides a detailed description of the materials, methods, and
quality standards required for the project. It sets the performance
requirements for the project, ensuring that all parties involved
understand what is expected of them.
c. If these documents are not clearly written or are incomplete, it can
lead to misunderstandings, conflicts, and claims. For example, if the
design is unclear, the contractor may make assumptions about the
intended outcome, which can lead to deviations from the original
design, causing claims for additional payment or changes to the scope
of work.
d. Similarly, if the scope of work is not detailed, it can lead to
misunderstandings about what is included or excluded from the
project, leading to disputes and claims. Incomplete specifications
can lead to problems with the quality of the materials or
workmanship, causing claims for defective work or the need for design
alterations.
Therefore, it is essential that all parties involved in a construction
project review and agree on the design, scope of work, and specifications
before the project begins. Clear communication and documentation are
essential throughout the project to ensure that everyone is on the same
page and that the project is progressing as planned.

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In conclusion, clear design, scope of work, and specifications are
essential to prevent claims or design alterations in construction projects.
These documents set clear expectations and provide a roadmap for the
project, ensuring that all parties involved understand what is required.
By investing time and effort in developing clear and detailed
documentation, project stakeholders can minimize misunderstandings and
disputes, resulting in a successful project outcome.

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