Construction claims management plays a critical role in minimising disputes and ensuring stability across complex projects.
Construction claims management plays a critical role in minimising disputes and ensuring stability across complex projects. As construction projects grow in size and complexity, the potential for claims or disputes increases. Without a structured approach to proactively identify risk exposure, evaluate, manage and/or resolve claims in a constructive and timely manner, teams may face costly delays, strained relationships, and disrupted delivery.
Construction claims can arise from several sources. Some of the most common include delays caused by design changes, unclear contract scope, and unanticipated site conditions. Claims may also relate to variations, disruptions, or disagreements over payments. Each of these can erode trust between project stakeholders if not addressed swiftly.
Poor communication or claims management are often a root cause. For example, when changes are made without proper documentation or agreement, they open the door to misinterpretation. Additionally, ambiguities in the contract—whether related to timelines, performance standards, or risk allocation—can make claims more likely. By understanding the typical origins of claims, project teams can take early steps to prevent escalation.
Effective construction claims management begins long before a dispute arises. It relies on a combination of discipline, foresight, and consistent project monitoring. Clear recordkeeping is the foundation. Daily logs, correspondence, meeting minutes, and photographic records create a defensible narrative of events.
Equally important is the early identification of risks. By flagging potential issues as they arise, teams can evaluate options and make timely decisions. Timely notice of claims is essential, not only to preserve contractual rights but to support fair and efficient resolutions, let alone possiblr avoidance from the outset.
Alongside these elements, proper contract administration remains a central pillar. This includes tracking milestones, verifying deliverables, giving due notices and ensuring that variations and instructions are properly documented. When these practices are embedded in project workflows, they reduce ambiguity and improve readiness to handle claims.
A well-structured contract supports proactive claims management. Both standard forms, such as FIDIC, and bespoke agreements must be carefully reviewed and administered. These documents define parties' rights and obligations, including procedures and timelines for submitting claims.
For example, in FIDIC-based contracts, construction claims management often hinges on compliance with strict notice periods followed by detailed submissions. Missing a deadline may result in the loss of entitlement, regardless of the claim's merit. It is essential to align project execution with these contract requirements from day one.
Dispute resolution mechanisms outlined in the contract—including negotiation, mediation, adjudication, and/or arbitration/ litigation—also shape the claims strategy. Understanding these pathways enables stakeholders to select the most effective approach at each stage of a disagreement.
Effective construction claims management is not only about documentation and entitlement—it is also about resolution. Early engagement and open dialogue can prevent many claims from becoming formal disputes. Where possible, negotiation should be the first course of action.
Mediation offers a structured setting for resolving more complex issues, while adjudication or arbitration may be required when interim or binding decisions are necessary. By treating claims as a structured process rather than an adversarial event, project teams can preserve relationships and minimise disruption.
These strategies are particularly valuable in long-term or multi-phase developments where cooperation and continuity are critical to success.
DG Jones & Partners brings deep experience in construction claims management, supporting employers and contractors in preventing and resolving disputes. Our team understands the dynamics of large, multidisciplinary projects and tailors our approach to suit each client’s commercial and operational goals.
We help clients identify risks early, prepare or respond to claims where and as appropriate, and defend their interests throughout the process. Our specialists can also act as adjudicators or expert witnesses when formal proceedings arise. With a commitment to clarity, integrity, and efficiency, DGJ empowers clients to navigate claims with confidence.
In an environment where delays, changes, and unforeseen risks are part of the landscape, construction claims management offers a disciplined approach to maintaining progress. With the right systems and support in place, disputes can be minimised or resolved with fairness and speed when they do occur.
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