Optimizing claim management process groups to enhance construction project success

In the complex construction projects, claims arising from unforeseen circumstances, contractual disputes, or project changes can significantly impact project outcomes, making effective claim management a critical aspect of overall project success. Ineffective claim management can lead to project delays, cost overruns, and in severe cases, project termination. This study examines critical factors influencing claim management in construction projects, analyzing stakeholder perceptions through a questionnaire distributed to 104 industry professionals. Using convenience sampling, the study utilizes a Relative Importance Index (RII), Frequency Index (FI), and Frequency Adjusted Importance Index (FAII) to rank the significance of 108 identified claim management factors across eight process groups. The findings emphasize the criticality of clear communication and robust contract management in mitigating claims. Poor negotiation skills, adversarial relationships, and inadequate documentation are identified as major obstacles to effective claim resolution. Pearson correlation analysis reveals strong correlations between key factors and their respective process groups, reinforcing the reliability. The research highlights the 'claims resolution' phase as particularly crucial, with factors like the use of balanced contracts (e.g. FIDIC/ICE) and comprehensive claim documentation emerging as highly significant. The study provides valuable insights for industry practitioners to enhance claim management practices and ultimately, improve project success rates.