Construction Claims Management Planning
This post is the second in a Subject Series Construction Claims and Disputes which are (will be) discussions regarding managerial challenges in potential and actual construction claims situations. In this series, we focus on the managerial aspects of construction claims and disputes management. This post addresses the planning, a key managerial requirement in all project work. First plan it, and then do (execute) the work. The notion is consistent with the old adage “An ounce of prevention [in this case management] is worth a pound of cure.” In that regard, litigation on a large and complex project can cost millions USD in expenses to pursue and may have tens of millions USD at issue.
Yes, construction claims and disputes can and should be managed. This is particularly true of large and complex projects.
Prospective Construction Claims Management refers to the managerial approach and planning for managing the risks (and options, opportunities, etc.) during project execution through project close-out related to claims.
Retrospective Construction Claims Management (development, presentation and defending) will be addressed in another post.
Claims Avoidance – There is a myth that construction claims can be avoided. Experience shows that this is just a myth, since it relies on controlling the activities of others. These others may be in an adversarial posture or position. Hence, control cannot be readily achieved. [Read more…]