Improving construction claim management in Malaysian construction industry

Abstract

The construction industry in Malaysia is large and it involves multidisciplinary participants. There is high frequency of disputes arising from construction contract claims. Even with the most expert understanding of construction contract clauses and the most equitable risk-allocation management, claims will continue to present problems if they are poorly managed in practice. The significantly increasing number of construction claims indicates the need for the implementation of an effective construction claim management. This research aims to improve the process of claim in construction industry. This research explores the problems related to the process of claim from contractors' and consultants' point of view by studying common procedure of claim management. The findings highlight on the three key issues. There are claim identification, claim notification and claim documentation. These issues are the most troublesome and contribute to the significant problems in construction claim process. It also appears that a standard and transparent procedure should be put in place whereby contractors would be able to follow to properly prepare the claim. In addition, staff awareness, training in how to document and submit a well-supported claim, and negotiations with clients are becoming a necessity.