A study on Causes and Management of Claims in the Sudanese Construction Industry

Abstract

Most of the construction companies in Sudan face many of constraints which are, negatively, affect the performance of projects. Such constraints have direct effect on the cost and time factors of the project. Independent of the constraints perceived, the difficulties in completing projects on a timely manner lead contractors to formulate claims to maintain their contractual rights they always attempt to avoid penalties specified in the contracts. This research aims at develop claims management system which can be used by contractors to ensure that their claims were substantiated adequately. To gain a better understanding of claims, types of claims and factors to be reviewed in an attempt to enable contractors the necessary knowledge of the elements of success and elements of failure in claims management. Certain research questions have been raised from the main conceptual framework and literature related to claims management and substantiation, these questions are as follows: • What is the concept of claims and why do they need to be managed mainly by the Contractor in the construction industry? • What are the shortcomings of the current claims management practices? • What critical success factors which can contribute to the improvement of claims management, confirmation and presentation? • What are the elements of well-structured claims management? • What are the advisable recommendations for avoiding claims arising from insufficient plans and specifications? The research hypothesizes were limited to some points which are Claims are common in the construction industry in Sudan, Having good contract clauses could minimize claims and disputes and the contract parties always are flexible and tend to solve their claims amicably. The data of the research was collected from the research population was held with professionals working in construction organizations and who were directly involved in claims area such as a group of construction companies, a group of engineers and site managers in Khartoum State. A questionnaire tool was adopted to obtain the data needed for the research. The study concluded the necessary elements which construction firms need to take into consideration when formulating their claims. The managerial aspect was the focus of the study rather than the legal aspect. Some of the findings revealed in this research were the importance of records keeping, formal notifications and significance of change and change orders in the context of claims management and other key aspects relevant to the field of claims management and substantiation.