Project Owners Originated Claims In Construction And Prevention

Construction projects require extensive coordination among the stakeholders. The primary reason that contracting parties have a considerable impact on the overall health of the project. Any negligence from the project owners can lead to claims in construction.

Are you dealing with a construction project and facing problems owing to owners’ lack of interest in the project? Consider reading the post to get a detailed idea of disputes originated by the owners.

Construction claims cause by owners and easy solutions

Nevertheless, effective management of claims requires a detailed overview of the reasons or causes. Sometimes, owners can trigger disputes knowingly or unknowingly that can significantly lead to claims in construction projects.

Let’s consider a few of such causes initiated by the project owners:

Competitive bids win the project

Generally, the contractors with the lowest bidding get the project. It may look highly lucrative to the project owners in the start but causes serious issues when the project construction is started. It is owing to the reason that contractors overlook the unanticipated changes, which leads to claims.

Preventive Tips:

The best tip to avoid issues resulting from a competitive bid is to pick the justifiable bids. It is better to get help from a quantum expert for the valuation of a project plan for picking suitable contractors. In this way, you will be able to make a wise decision.

Don’t always go for the lowest budget bid because then you will experience post-construction defects.  Obviously, a low budget leads to low-quality materials.

Ambiguous project scope at the time of bidding

Project owners are required to define the scope at the time of the project launch. It enables the contractors to bid on the projects by keeping the requirements into considerations. However, the inadequate scope of the project can lead to claims because contractors couldn’t identify actual work requirements.

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So, a concerted effort to explain all essential requirements is crucial for the success of construction projects. It is because requirement specifications impact the whole lifecycle of the project.

Preventive Tips:

Contractors should consider the requirements in detail. In case of any ambiguity, it is better to ask the owners from the very start to avoid disputes at later stages.

Insufficient time for preparing the bid

It is something a bit critical when it comes to project bidding. It requires considerable time to understand the scope of the project for bidding. However, a few construction project owners overlook the importance of giving an adequate time period to the bidders, which leads them to claim at the end.

Preventive Tips:

Time pressure can lead to confusion. Therefore, project owners should understand the value of time for letting the bidder comprehend the project before getting into contracts. It will prevent the claim for once and for all.

Sudden work plan changes during construction

Owners define the construction project scope, and so, they are solely responsible for setting up the requirements. Any change in the existing scope may require additional efforts and time.  Moreover, sudden changes are challenging during the project, and so, it leads to disputing claims.

Preventive Tips

It is imperative to define the project in detail under the supervision of experts. The conceptual phase is crucial because it will help the contractors to make the work plane accordingly, ensure to make it comprehensive.

Discuss the changes in detail to get the confidence of the contractors and assign time extensions for working without disputes.

Underestimate costs for materials and workforce

The costs are predicted at the time of signing agreements. Generally, the cost for materials and labor is defined, keeping the availability of products and inflation ratio in mind. However, a few contractors underestimate the costs, which lead to issues at later stages. It is owing to the fact that prices increase drastically, leaving the contractors in the larch of helplessness. It is a significant cause of claims in construction.

Preventive Tips:

The project owners should play a critical role in defining the project schedule and costs. It is essential to keep the costs realistic and justified optimistically. However, if the prices increase rapidly without prior expectation, it is better to acquire the services of a quantum expert for evaluation to get a middle way for resolving the issues peacefully.

Delay in the approval of workplace and materials

Last but not least, owners are responsible for approving the workplace of the construction process. Similarly, the responsibility also includes the approval of materials to be used in the construction. Any delay in approval may lead to a postponement in the project delivery. It results in construction claims.

Preventive Tips:

The owners should realize the importance of time while checking the materials and work plan for approval. A pro-active approach towards all the activities can eliminate the risks of owner-triggered disputes in construction.

Keynote: Owners should balance the work in construction projects 

Summing up, owners play a vital role throughout the construction projects. They need to reduce the risks of claims by managing all essential tasks and activities of construction projects with due responsibility. For this, owners should collaborate with the contractors to avoid disputes at any cost to get the project delivered in time!