A claim can be explained as a request for compensation for damages incurred by any party to a contract (Semple, Hartman, & Jergeas, 1994). Whether you are a sole practitioner or part of a large multidiscipline firm, there is one undeniable truth: You will almost certainly be hit with a claim. Either for demanding money or additional services due to damages allegedly generated by negligent performance of professional services in the construction industry. Indeed, an important part of modern contract systems, claims are common and can happen as a result of several reasons that can contribute to delaying a project and/or increasing its costs (Guelzian and Samelian 2003 and Kartam 1999).The difference between how firms manage these claims, however, can impact their profitability in both the short term and the long term.
To manage these problems we must understand the concept of claim management
2.1.2 Claim Management
Claim management can be said as the efficient management and handling of the claims that occur within the project life cycle. Claim analysis has become such an important issue for project management that it cannot be left out of any respectable publication on the subject. As with any human endeavor where more than two parties are involved, contracting operations are dealt with controversy and dispute, and it has become very important to know how to prevent and solve claims in time to avoid compounding the problem later on in the contract. Having a management strategy already in place will prevent the respective firm from getting caught off guard by claims. While claims may be inevitable, effective claims management takes little more than common sense and good business judgment. There is no magic to it; either you manage claims or they will manage you.
2.1.3 Claim-Analysis Procedures
The principle motivation behind setting up a claim-management methodology is to have a complete, steady and orderly way to deal claim analysis and evaluation during the negotiation period. Figure 1 is a stream graph of a specific methodology for dealing with claims. The following layout has demonstrated effective way in gathering the required information for an examination, and additionally helping the expert in his way to deal with the current issue. All accessible documentation and data regarding to the claim have to be assembled and analyzed thoroughly. It is fundamental to understand that the investigator needs to be exhaustive and fair in assessing the contractual worker’s position, and additionally that of the owner.
• Generate and approve a working schedule within the first two contract weeks
• Establish and maintain planning and scheduling
• Establish and maintain a procedure to notify and negotiate plan and schedule revisions
• Process plan and schedule modifications promptly and avoid further complications
• Establish and maintain detailed record-keeping, including:
§ Minutes of meetings
§ Change justifications
§ Manpower curves