Construction Claims Management Practices and Dispute Resolution Mechanisms in Construction Contracts

Abstract

The Construction industry is one of the most complicated industries worldwide, due to the large number of variables that affects it, including but not limited to the different stakeholders, processes, labour, equipment, material, and project’s staff. These variables and their interconnection often lead to delays, disruptions, and conflicts to the construction process and affects all aspects of the project, such as time, cost, quality and scope which automatically transcribes construction claims are unavoidable in the industry. This thesis examines the different claims management processes and procedures in the construction industry and compares them to the Egyptian market, identifying critical issues and proposing recommendations for improvement based on international best practices. The author conducted a questionnaire among construction and claims experts from the Egyptian market to identify the critical issues. The research highlights several key challenges, including poor communication between site and claims teams, inadequate documentation practices, reluctance to document verbal instructions, fear of damaging relationships through claims notifications, and the lack of specialized software for managing claims, as a result the research emphasizes the importance of robust communication, digital documentation systems, standardized documentation practices, and the adoption of advanced project management tools. In addition, the study proves the need for enhanced training programs, clearer contractual provisions, and increased awareness of alternative dispute resolution methods. By addressing these issues, the Egyptian construction industry can significantly improve its claims management processes, leading to fewer disputes, lower project costs, and better project outcomes. The findings present a comprehensive overview of the current state of claims processes in Egypt and offer actionable recommendations to align local practices with international standards.