HomeBusinessTips for Management of Construction Claims in a Proper Manner

Tips for Management of Construction Claims in a Proper Manner

The construction industry is laden with risks. Construction companies should hence optimize their claims management processes to make sure they are reducing the risks and delays. Hence construction professionals need to obtain a good understanding of how they can effectively manage the construction claims process.

What are the causes of construction claims?

It is imperative that we first clarify the kinds of incidents and factors construction claims can start from. A wide variety of factors cause them to happen and they are as under:

  • Delays in project (materials shortage, inaccessible construction site).
  • Disputes in construction contract and/or practices.
  • Any unforeseen circumstances (for instance construction site conditions, weather delays, natural disasters or labor strikes).
  • Lackluster project management.
  • Too many errors and omissions in project designs.
  • Accidents taking place on sites.
  • Misconduct among employees.

It is hence proven that risk is an inherent part of the construction industry. This indicates that managing construction claims is vital to the success of organizations and construction projects.

Key tips for managing construction claims in an effective manner

Some claims cannot be avoided. But with a proactive approach to claims management, construction companies can prevent them from happening, and even reduce the effort it takes in resolving them. Through optimizing such a tactic, companies can manage risk proactively, give workplace safety a priority and keep projects on track. Budgets will also be saved too.

Here are the key tips that can help do so:

Conducting bids in a realistic manner

At times some contractors bid quite low to get the job. This can save money in the first place, but it can later raise costs and ruin the time needed to complete a project. Realistic bidding can help set fair contract prices and help set better expectations. 

A clearly defined scope of work can also help in avoiding construction claims from unforeseen and force majeure events. It also helps reduce claims’ risk through the project’s course and duration.

No need to ignore the claims until the end of the job

In case a claim arises during a project, it can be a temptation to wait to handle it until the job’s end. However, timely resolution of claims is much needed and that is why a robust claims resolution process to avoid additional costs is needed. 

With a proper management plan in place, construction companies can improve organizing and monitoring daily claims processes. This will help them ensure that claims do not slip up through the cracks.

Keeping detailed records properly

Construction contracts and projects always require detailed records stored properly. However a lot of companies struggle in this area, especially when it comes to maintaining a comprehensive and accurate history of previous and past projects.

Instead, relying on siloed data storage as well as outdated processes (such as spreadsheets) can only add more to the problem at hand. 

This is why expert analysis recommends implementation of a solution that integrates multiple information sources in a single location. That solution should also provide employees access to a centralized board for more effective record keeping and documentation.

Implementation of continuous monitoring

Continuous monitoring can help identify and assess risks before they take place. Early identification of issues and warning signs such as project milestones missed, requests not responded to, lack of accountability and lack of communication, is a must.

Also a comprehensive plan on how to respond to risks is also a key part of a proactive strategy for managing construction claims on an effective footing.

Making a worthwhile investment in a risk management solution

Avoiding construction claims is proper risk management. THis is the very reason a risk management solution is needed to smoothen up the tactics of managing construction claims. 

A risk management platform working with real-time data and worthwhile insights enables both construction companies and employees to reduce inefficiencies, reduce costs and raise accountability and proper communication channels too.


Construction claims are indeed problematic. Yet Modern technology has found ways to control all this. Managing construction claims is no longer a hectic task. Then again, construction companies should use technology to make sure they don’t get stuck in the bear trap else they’ll end up paying hefty amounts of money in construction claim settlements.



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