However much planned, risk is inherent in the realm of construction, and because of that, Construction Claims happen. The most important way to optimally deal with claims in construction is by being proactive. This entails that as soon as a Claim occurs, everything is already in place, and you just have to execute.

On the other hand, if a claim is not managed properly and promptly, it can result in notable financial losses and legal conflicts. Before we delve into the best practices to manage claims in construction, let's have a look at the most common causes for a claim:

• Delay in the construction process

• Disputes that are associated with contracts or construction tasks

• Insufficient planning for the uncontrolled factors

• Inadequate project management

• Flaw is design, whether its os structural or architectural

• Poor implementation of on-site safety standards

• Any employee misconduct

Well, the above are some of the most common examples that can lead to a claim in a construction project. Now, let's look at the best practices that can be implemented to manage claims efficiently.

The Key Role Professionals Play!

Note that resolving a claim requires ample knowledge. However, it is also important to ensure that the matter does not go beyond control. This is due to the reason that it becomes very important to hire the services of a Construction Claim Estimating Company.

They are highly qualified experts who provide you with guidance. This guidance helps you navigate how to efficiently manage a claim from a financial point of view. Not only that, but their expertise extends to preparing a claim, construction management, as well as resolving a conflict.

Effective Practices to Manage Construction Claims

These claims in construction are sort of a compensation. They can be in the form of time or payments. Such claims can arise from the above mentioned causes, or other unprecedented ones.

Regardless of the nature of a claim, we have outlined the most productive practices to manage them. They are as follows:

1. Systematic Contractual Execution

Well-organized contracts in construction play the most vital part in managing claims successfully. The more organized the contractual agreement is, the better it is for dispute resolution.

What must be done?

• The scope of work on the construction should be well defined.

• Ensure that all the parties are aware of the terms & conditions of the contract

• In case there is a tiny variation within a project scope, make sure that this is incorporated within the contract as soon as possible

2. Dynamic Risk Management

There would be risks involved in every construction project, and this is the reason why risk management approaches must be adopted in order to reduce the effect of the claim. This involves identifying potential risks and highlighting the strategies to manage the risks.

For instance, during Construction Material Estimation, it is wise not to rely on just a single supplier. Rather have a secondary supplier at your call to deal with any material shortage situation. 

Possible measures to take

• Ensure to identify or point out areas that are prone to risks

• Assess the likelihood of a risk and plan accordingly to apply a risk mitigating strategy

3. Efficiently Archive Information

When a claim occurs, documentation and record keeping becomes exceptionally essential for efficient claim management. In resolving a claim, these two can be the deciding factors whether a claim will be successful or not; thus, their cruciality cannot be overstated.

What needs to be done

• Make sure that a comprehensive record is kept for all the project-related documents

• Efficient documentation and record keeping are assured by applying project management software

• Ensure that all the documents are constantly reviewed to make sure that they are updated

4. Communication & Engagement

The clearer the process of communication, the more interested the parties will be. The reason behind this is that in the event of a claim, communication plays a critical role in effectively dealing with the claim. The better the communication across all the parties involved, which could be the client, contractors, or other stakeholders, the better they will all be in the same page. Meaning, without letting the claim escalate again.

Possible measures to take

• Hold regular meetings and ensure that all stakeholders are updated about the progress.

• Make sure that proper media for communication are being used

• Effective communication allows for implementing proper risk strategies, which ensures that a conflict will not escalate

5. Employ Technology

The construction realm has been taken over by technology, and that is why managing claims has become quite easy. Using technology has its perks, as it has streamlined the entire process of a claim. Added to that, it ensures accuracy at every step and, thereby, eliminates errors to come up with positive results.

What needs to be done

• Utilize digital software like Xactimate that provides precise Xactimate Estimating Services

• This tool comes with the feature of data analytics, which predicts cost overruns and offers a cost-effective solution.

• This tool also helps streamline the process of managing a claim by providing a centralized database.

End Note

In the end, ensuring an efficient Construction Claims management is a multilayered challenge. Everything must be carefully evaluated to ensure the success of a claim at any level of a construction project. Furthermore, the importance of a professional cannot be overstated, largely due to the inherent complexity of a claim. Thus, to ensure that every aspect of your claim has been thoroughly managed, you need SMA Estimating LLC as your construction claim expert. Additionally, this article highlights some of the top-notch practices for efficiently managing any type of claim.