American Journal of Civil Engineering and Architecture, 2014, Vol. 2, No. 6, 186-196
Available online at http://pubs.sciepub.com/ajcea/2/6/2
© Science and Education Publishing
DOI:10.12691/ajcea-2-6-2
Reducing Construction Disputes through Effective
Claims Management
Hossam H. Mohamed, Ahmed H. Ibrahim, Asmaa A. Soliman
*
Construction Engineering & Utilities Department, Zagazig University, Zagazig, Egypt
*Corresponding author: asmaamadany@hotmail.com
Received October 01, 2014; Revised December 05, 2014; Accepted December 09, 2014
Abstract Reducing construction disputes appears to be the main goal for many researchers in the last decay. Each
of them has attempted to clearly identify the expected causes of disputes. Construction claims can be considered as a
main source of disputes. This paper aims to identify the most important causes that converting construction claims
into disputes. A proposed system that can help to avoid converting construction claims into disputes was provided.
Factors that causing disputable claims were identified through four stages. The first stage 140 factors that causing
disputable claims were collected from international literature. The second stage a brainstorming was used to reduce
the number of these factors and get the most common factors causing disputable claims. Hence 31 factors were only
considered. These factors were divided into three major categories: behavioral, contractual and operational matters.
Through third stage, the thirty one factors were subjected to a further survey to identify their importance index
(relative significance). One hundred and two interviews were conducted and their results are employed to develop an
importance index score for these disputable claims causes. Furthermore, the thirty one disputable claims causes were
then ranked according to their relative importance. The fourth stage, The 80/20 rule applied to the causes identified
to get the eight most important causes that represented about 25% of the causes. The most important eight factors
were considered as the factors that converting claims into disputes which identified as follows: 1) delay interim
payment from client, 2) qualification of team work, 3) extension of time, 4) incomplete drawings and specification, 5)
Poorly written contracts clauses, 6) change orders, 7) cooperation and communication nature among project team, 8)
late supply of equipment and materials. A proposed system for avoiding converting claims into disputes was
presented. Furthermore, a checklist was designed during construction stage and four actual case studies were
considered and discussed.
Keywords: causes of disputes, disputable claims management
Cite This Article: Hossam H. Mohamed, Ahmed H. Ibrahim, and Asmaa A. Soliman, “Reducing
Construction Disputes through Effective Claims Management.” American Journal of Civil Engineering and
Architecture, vol. 2, no. 6 (2014): 186-196. doi: 10.12691/ajcea-2-6-2.
1. Introduction
El-Wakel [6] defined "construction claims" as a claim
involving a demand for payment or work related to a
construction project. The claim may be either from a
contractor claiming additional compensation due to
changes in a contract or a client asking for compensation
or additional work to be completed by a contractor not
fulfilling the terms of a contract. Charehzehi and
Ahankoob [2] mentioned that “a dispute can be said to
exist when a claim or assertion is made by one party is
rejected by the other party and that rejection is not
accepted.” On the other hand, incongruence among
various parties in terms of their profits, requirements, and
purposes which can lead them to try for the achievement
of their own goals, refer to construction dispute. Overall
dispute occurs when parties reject to deliver their
obligations under the contract provisions. Figure 1
identifies the relationship between conflict, claims, and
disputes. In addition, it shows that claims can in turn lead
to disputes when settlement cannot be reached.
Figure 1. Conflict, Claims and disputes Adapted from Gebken [8]
El-Mesteckawi [4] founded that, there are three types of
claims according to claimant compensation; time claims,
cost claims and time and cost claims. The word