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Abstract
Construction projects are subject to implementation challenges which constitute risks that threaten their smooth execution. Once risks become a reality, they give rise to project cost escalation and time overruns, which can lead to claims. Claims are a major source of friction between contracting parties in the construction industry and can divert considerable resources in form of both finances and staff time from ongoing projects.
An overview of issues related to construction claims, using the Zambian construction industry as a case study is presented in this paper. Three research methods: literature review, semi-structured interviews and a questionnaire survey were used in the study. The questionnaire survey formed the main data collection method for the study.
The study reported in the paper established that claims normally result from omissions and actions during the pre-tendering and contract formulation phases of projects, although they usually manifest during the construction and post-construction phases. Once a claim is presented, contracting parties develop negative perceptions which create adversarial relationships between them. Fair and expeditious settlement of claims in Zambia was established to be difficult mainly due to: untimely notification, poor record keeping, inadequate legal and factual justification and poor presentation.