The undeniable need for implementation of construction claims management has increased tenfold due to the unavoidable nature of claims rising. Critical problems occur on-site that are missed by the administration and staff that could potentially reduce the risk of claims. The construction industry is an important part of the American economy. The consistent need for buildings and housing all contribute to the million-dollar industry. With that said, the dynamics and changes of scope within the construction industry has made it difficult for projects to finish on time. This leaves the industry open to disputes of all kinds.
What is Claims Management?
Proper claims management should involve a construction claims expert, and his or her team, employing a timely identification and analysis of a claim to resolve it in an efficient manner before it heads to the litigation and arbitration process. This becomes all sorts of problems for the construction project because it delays it even further as well as harms the finances due to the associated issues and complications that follow.
The Rise of Claims
Construction claims have significantly increased over the years to the point where they’re almost routine to a project. The primary reason that many contractors bring up these claims are because of design changes that are introduced at a delicate stage of the project. The next reason would be the short time period that is to be met by the standards of the contract. Many times the contract demands a certain time frame to be met without being properly investigated to ensure that it is within reason. Construction claims consultants believe that the details and lack of planning is a hindrance on the project and is a cause for drafted claims.
Owners should ensure that their entire construction project is planned well from the start without any major changes being implemented once it has been started. Additionally, design flaws and errors within the blueprints are a just cause for a claim and the fault lies solely on the architect. It’s very important that the owner and the contractor both understand their obligations under the contract and are able to perform their duties efficiently and effectively.
By working in tandem with the contractor, the owner can reduce the risk of claims. While there is a high chance that there will at least be one claim being drafted during the entire construction process, by recognizing the most common issues and even seeking advice from a construction claims consultant.