Risk Level of the Types and Causes of Claims in Construction Projects of Pakistan

Abstract

Managing claims is very essential for successful construction projects. For this, the identification of claims and the causes of occurrence of the claims are very crucial. Hence, this research investigated the types and causes of claims and their risk level in construction projects in Pakistan. The study was carried out based on a quantitative mode of research using a questionnaire survey. The survey was conducted amongst the professionals (client, consultant, and contractors) involved in handling construction projects. The survey was done by visiting the participants in person and electronically. A total of 51 completed questionnaire forms were received. Data were analyzed using the SPSS (v20) and Microsoft Excel spreadsheet program. The results suggested that payment-related issues, evaluation of the quality and quantity of completed works, Final cost, Awarding bid to the lowest bidder, and Change or variation orders are the top 5 claim causes with the highest risk level. At the same time, the top 5 types of claims with the highest risk level are Extra-work claims, Payment/Financial, Extension of time, Change claims, and Escalation. This study will help practitioners to recognize the risk-related issues of claims occurring in construction projects.