Management of Claims and Disputes in Construction Industry

Construction projects are increasingly complex, resulting in complex contract documents. Complex construction can likewise result in complex claims and disputes. This paper provides an introduction to the claim management and dispute resolution techniques that are frequently encountered in the construction industry. Claim is a legitimate request for achievement of a contractual milestone or additional compensation on account of a change to the contract, if these claims made by contractor are not managed clearly, it gives rise to a disagreement or argument over the validity or quantum of a claim known as disputes. Because of the substantially increasing number of construction claims nowadays, the implementation of the effective construction claim and dispute management is needed. Disputes between the parties to construction projects are of great concern to the industry. Both the study of construction industry disputes, and the causes of those disputes, is essential. It can be concluded that construction disputes are a cause of concern in every construction project and the solution to this problem is to avoid and cautiously manage them for smooth running of construction process.