Dynamics of the contractor’s units in the preparation and evolvement of claims’ documentation -

Abstract

The resolution process of claims is regulated by the International Federation of Consulting Engineers FIDIC in its standard contract conditions, where we can track the key milestones along the timeline of a claim(1) starting with the incident giving rise to a claim and submittal of particulars by the contractor, (2) passing through Engineer’s determination and, subsequently, Dispute Adjudication Board (DAB)’s decision, (3) going through amicable settlement process, and (4) ending with arbitration. The FIDIC conditions of contract clearly include in several of its clauses procedures for the administration and resolution of claims. The implication is that there has to be an adequate management setup to deal with claims, and a great level of skill and effort shed on the Contractor’s that determines the success or failure of a claim. Problems with claims management are most profound in the areas of claims justification, quantification and acute with respect to retrieval and generation of supporting relevant information. This suggests the need for complementary research into the claims management process and requires a change in management strategy linked to quality management systems that initiate remedial action on the basis of the monitoring of actual compliance with procedures. The general aim of the research reported in this paper is to attempt to bridge this gap. The challenge under these circumstances is to provide a conceptualized model for the most important aspects of the evolvement of supporting documentation pertaining to a claim, and enhancing communication and information flow within the contractor’s management setup involved in the claim preparation process. This research outcomes include (1) a comprehensive reading of the Claim-Dispute timeline, highlighting (a) the nature of the burden of proof and substantiation that the contractor has to attain and (b) the acceptable standards of presentation and documentation of claims; (2) a clear understanding of, and conceptualization f