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FACTORS AFFECTING CONTRACT CLAIM MANAGEMENT IN CONSTRUCTION
Authors
Prasad Patil,P.M. Attarde
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Keywords
Factors Affecting Contract Claim Management in Construction
Abstract
The construction industry is a complex and competitive environment in which participants with different views, talents and levels of knowledge of the construction process work together. In this complex environment, participants from various professions, each has its own goals and each expects to make the most of its own benefits. In the construction industry, since differences in perceptions among the participants of the projects, conflicts are inevitable. If conflicts are not well managed, they quickly turn into disputes. Disputes are one of the main factors which prevent the successfully completion of the construction project. Thus, it is important to be aware of the causes of disputes in order to complete the construction project in the desired time, budget and quality. Construction claims are also found in almost every construction project. It is the seeking of consideration or change by one of the parties involved in the construction process. Nowadays, the substantially increasing volume of claims are the result of the rising complexity of the projects, the price structure of the construction industry and the legal approach taken by a lot of owners and contractors. There are several researches that show the order of magnitude of the effects from construction claims on cost and time of the projects. During the past two decades, serious disputes concerning construction contracts have become increasingly common in construction projects. It is common practice for designers, contractors and owners to negotiate small and uncomplicated disputes, but larger and more complex ones frequently hinder the project through involvement with lengthy legal issues. Typically, if the parties cannot reach a resolution themselves, expensive, time-consuming legal procedures begin, which severely affects all the participants. Disputes are a reality in every construction project. Without the means to address them, minor issues can fester and grow, with crippling consequences for project participants. The rising cost, delay and risk of litigation in construction disputes has prompted the construction industry to look for new and more efficient ways to resolve these disputes outside the courts. It has been found that when resolution occurs sooner rather than later and when this resolution is relatively confrontational, there is a much better chance that litigation can be avoided. Waiting until the end of a project to address a dispute inevitably makes it harder and more expensive to resolve. Parties involved in a construction dispute, or indeed any commercial dispute, generally prefer to retain control over the outcome and maintain a working business relationship.
IJCRT's Publication Details
Unique Identification Number - IJCRT1892913
Paper ID - 190121
Author type - N
Page Number(s) - 487-492
Pubished in - Volume 6 | Issue 2 | APRIL 2018
DOI (Digital Object Identifier) -
No Of Downloads - 1240
Author Country - -, -, -, -, -, Science & Technology
Publisher Name - IJPUBLICATION | www.ijcrt.org | ISSN : 2320-2882
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Prasad Patil,P.M. Attarde, "FACTORS AFFECTING CONTRACT CLAIM MANAGEMENT IN CONSTRUCTION", International Journal of Creative Research Thoughts (IJCRT), ISSN:2320-2882, Volume.6, Issue 2, pp.487-492, APRIL 2018, Available at :http://www.ijcrt.org/papers/IJCRT1892913.pdf
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