Analytical Review of the Construction Contractors' Challenges in the Contractual Claims

Document Type : Original Article

Authors

1 Associate Professor, Shahid Beheshti University.

2 Associate Professor, University of Tehran.

3 Master, Mehr Alborz Institute of Higher Education.

Abstract

Due to the uncertainties in the construction projects and their differences with the service and manufacturing industries in terms of scope of the work, environmental factors, executive and scheduling challenges, contractors and clients always face with significant damages, regarding contractual disputes. In such circumstances, it is essential to empower contractors in making contractual claims and managing the claims. The aim of this study is to identify contractors’ challenges in the claiming process and the way for dealing with these challenges. In this regard, these challenges along with the most important shortcomings of claims are identified, analyzed and prioritized. Research method including literature review, analysis of 16 claims in 4 projects, interviewing with ten experts and finally applying a questionnaire method, by obtaining 60 experts opinions about 38 challenges and the key shortcomings of the claim’s statements have been done. According to the research findings, 40% of the challenges are related to contractors and their internal organizational processes, 29% of the challenges are related to governmental organization and their rules, 21% of the challenges are related to clients and finally 10% of the challenges are related to the consultants and their monitoring systems.

Keywords

Main Subjects


  1. Agha Jamali, Gh. (2017). Problems of the General Conditions of the Treaty. The First International Conference and the Third National Conference on Construction and Project Management (in Persian)
  2. Amiri, M. (2014). Presentation of a Model for Ranking a Project Activities Risk using CPM Network and TOPSIS Method in Fuzzy Environment. The Journal of Industrial Mnagement Perspective, 3(2), 169-183. (In Persian)
  3. Arefazar, Y., Nazari A, Hafezi M R, Maghool S A H (2019). Prioritizing agile project management strategies as a change management tool in construction projects, Taylor & Francis, Internationnal. Journal of Construction Management, ISSN: 1562-3599 (Print) 2331-2327 (Online), PP: 678-689 
  4. Asari, A. & Hosseini, S.A. (2019). Review and management of the contracts in civil engineering projects for claim management. 6th National Congress of Civil Engineering, Architecture and Urban Development (In Persian)
  5. Ashraf, B. (2011). Key problems facing contractors in the developing projects. 4th National Congress of Civil Engineering, University of Tehran. (In Persian)
  6. Bagherpour, M., & Mousavi, S.A. (2018). Presenting an Interpretive Structural Model for Claim Management in Civil Projects. Farda Management Journal, 57, 153-170. (In Persian)
  7. Bakhary Nor Azmi, Adnan Hamimah, and Ibrahim Azmi, (2018). Construction Claim Problems in Malaysia. MATEC Web of Conferences 192
  8. Bradley, S. & Langford, D. A. (1987). Contractor’s Claims. Building Technology and Management, 13, 37-44
  9. Bramble, B.B., & Callahan, M.T. (1992). Construction Delay Claims. 2nd ed., Wiley, New York, NY.
  10. Chovichien V. & Tochaiwat K., (2006). Information System for Managing Construction Employers’ Claims. Technology and Innovation for Sustainable Development Conference,
  11. Dadpour, M. H., Shakeri E, Nazari A. (2019). Analysis of Stakeholder Concerns at Different Times of Construction Projects Using Social Network Analysis (SNA). International Journal of Civil Engineering, Iran University of Science and Technology, 17, 1715–1727.
  12. Dastyar ,B. Esfahani, F, Askarifard,M, Monir Abbasi A (2018). Identification, Prioritization and Management of Construction Project Claims. Journal of Engineering Project and Production Management 8(2), 90-96
  13. Dehghani, R. (2017). Identifying and rooting out the critical factors of the claim in the areas of time and cost from the perspective of clients, consultants and contractors. International Conference on Civil Engineering, Architecture and Urbanism in Contemporary Iran (In Persian)
  14. Ebrahimi, S.N., & Akbari, M. (2017). Identification & Evaluation and Management of Risks in Oil and Gas Design and Construction Contracts and Its Impact on the Prevention of Claims and Disputes, Iranian Journal of Energy Economics, 6(23). (In Persian)
  15. Farisi, M. (2020). Prioritization of the causes of claims in the multi-purpose residential, commercial and sports complexes projects in Ahvaz city, using multiple-criteria decision making methods.4th International Conference on Civil Engineering and Architecture in 21st Century Urban Management. (In Persian)
  16. Ghanbar Gorgani, M. et al. (2017). Investigating the Causes of Contract Claims in Tehran and Suburbs Urban Railway Company (Metro). 12th International Conference on Project Management. (In Persian)
  17. Ghodoosi, M., et al. (2020). Presentation of Risks Analysis Model in Urban Projects Based on Data Mining Technique with Case Study. The Industrial Mnagement Perspective, 10(38), 137-159 (In Persian)
  18. Golabchi M.parchami jalal, talkhabi.bemanian. (2015). The Development and Analysis of Claim Package Model in Iran Design–build Projects. Management Research in Iran, 18(4), 112-134 (In Persian)
  19. Hassanein, A.A.G. & El Nemr, W. (2008). Claims management in the Egyptian industrial construction sector, Engineering. Construction and Architectural Management, 15(3), 246-59.
  20. Jaberi A., Feili A., & Safayi M. (2019). A Review of Concepts of Claim Management. First National Conference on Management, Business Ethics. (in Persian)
  21. Kaviani, E. (2019). Identifying and ranking the causes of disputes in the construction contracts, review general terms of the contract using the combined of fuzzy & AHP methodology. Fifth International Conference on New Research in Civil Engineering, Architecture, Urban Management and Environment (In Persian)
  22. Khaki, Gh. (2004). Research Methods in Management. Third Edition. Tehran. Scientific Publishing Center of Islamic Azad University. (In Persian)
  23. Kingsfield Consulting International (2006). Claim Management, kingsfield consulting international, 2006.
  24. Mohamadnezhad, H., & Arbabi H. (2015). Problems related to the claim management process in Iran. International Conference on Industrial Engineering and Management (In Persian)
  25. Mohammadpour, M. (2020). Investigation and Prioritization of Clients Based Claims of Construction Project Contractors in Tehran Regional Power Company by Promethee Method. Civil and Project Monthly, 2(7), 23-29 (In Persian)
  26. Mohseni, A.B, (2019). Investigation of the Problems and Reasons of Claims between the Client and the Contractor in Mehr Housing. Civil and Project Monthly, 1. (In Persian)
  27. Nobari, N. & mombini, A. (2015). Knowledge-Oriented in the Claim Management. International Journal of Business and Management Invention, 4(5), 26-32
  28. Parchami Jalal, M. (2000). Investigation of the general conditions of the old and new treaty, Master Thesis in Civil Engineering. Construction Management, Iran University of Science and Technology (In Persian)
  29. ParchamiJalal, M., & Darwish, M. (2014). Contract claims and its legal basis, 8th National Congress of Civil Engineering, University of Babel (In Persian)
  30. ParchamiJalal, M., & Darwish, M. (2015). Contract claims and its legal basis, 8th National Congress of Civil Engineering, University of Babel (In Persian)
  31. Parchami Jalal, M., & MirMohamadi, M. (2017). Review of litigation process and frameworks. 11th Conference of the National Congress of Civil Engineering (In Persian)
  32. ParchamiJalal, M., & Moradi, S. (2018). Dispute Management Office, Solution for Implementing Claim Management Processes in the Contractor-Based Construction Industry. 6th National Congress of Civil Engineering, Architecture and Urban Development. (In Persian)
  33. PMI (2016). Construction Extension to the PMBOK®Guide, 2nd edition,
  34. Safayi M., Feili A. et al, (2020). Investigating the Impact of Knowledge Management in Claim Management. Civil and Project Monthly, 2(6). (In Persian)
  35. Sajedi, F., & Sarmast, F. (2017). Analysis of Claims and Disputes of Construction Project Contracts in Iran's Oil and Gas Industry and Presenting Solutions. Iranian Structural Engineering Association, 4(2) 173-192(In Persian)
  36. Shakeri, E., & Mansouri, M. (2014). Claim Management of Civil Contractors Claims. National Conference on Applied Civil Engineering and New Achievements (in Persian)
  37. Shakeri, E., & Ghorbani, A. (2006). Project Management and Recognition of the Major Causes of Claims by Construction Project Contractors. 2nd National Conference on Construction and Project Management. (In Persian)
  38. Shoara, Sh. & Nazar, A. (2019). An optimization framework for risk response actions selection using hybrid ACO and FTOPSIS. Scientia Iranica E(2019) 26(3), 1763-1777.
  39. Talkhabi, H., Parchami Jalal, M., golabchi m. (2014). Investigation and Analysis of the Causes of Contractors Claims in the Underground Construction Projects. Journal of Tunnel and Underground Spaces Engineering, 3(1) (In Persian)
  40. Vidogah, W., & Ndekugri, I. (1997). Improving Management of Claims: Contractors’ Perspective. Journal of Management in Engineering, 13(5), 37–44.