Claims management: a review of challenges faced

Abstract

The focus on managing claims in the construction industry has gained prominence in recent years due to their unavoidable nature and associated financial impact. Studies have shown that claims and their management consume considerable resources, both of which can be reduced with efficient and effective management. Past studies have also established that improper and inefficient management of claims may result in otherwise unnecessary disputes, resolving which is also a resource-intensive process. This study reviews the range of challenges faced in managing claims. Based on a comprehensive review and evaluation of relevant literature, five broad challenge themes were observed: stakeholder predisposition; insufficient resources allocated for claims management; lack of established procedure for claims management; poor documentation and management of information and lack of general and expert contractual knowledge were observed. The results of this study will facilitate a better understanding of the challenges faced in managing claims, which will in turn help in evaluating existing solutions and in developing more effective solutions that leverage the latest information and communication technology.