Claims Management: The Blueprint to Success
November 22, 2023DownloadsDownload Article
This article from CFMA Building Profits magazine was first published in September 2023. The entire article is available at https://cfma.org/articles/claims-management-the-blueprint-to-success.
Handling claims is one of the more difficult jobs a contractor will have to perform during a construction project. A variety of problems that develop during construction, such as scope revisions, different site conditions, and project delays, can give rise to change orders and claims for additional time or compensation.
On construction projects, adjustments are always being made. The impact on the budget or schedule usually determines how minor or major the modifications are. Most of the time, minor adjustments will be handled with little effort. Significant alterations, however, will nearly always result in a change order and, should they be contested or lack support, could give rise to a claim. When disputes arise, the contractor may need to provide extensive documentation to support their claim and prove entitlement to the extra cost and time.
Fortunately, with sufficient planning and preparation—including the installation of suitable project controls and the upkeep of pertinent contemporaneous project documentation—claims can be more readily validated and quantified.
This article, published in the September/October 2023 issue of CFMA Building Profits magazine, explains how contractors can develop precise and substantiated claims by identifying cost consequences early on, using proactive accounting and project management procedures, and keeping sufficient records to back up their computations of damages. The authors also look at how to prepare claims in different ways and what information and proof is needed to get the best results.
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