Claims Avoidance in road projects : corollary contributions of lessons from the past

Abstract

Claims in road/expressway construction are contemplated by many project stakeholders to be one of the most unpleasant and disruptive measures of a project. Claims in road/highway construction projects in Sri Lanka are inevitable, and there is no exception to the other countries. These claims result in an extension of time, cost overruns, and adversarial interrelation between the stakeholders. Therefore, avoidance of claims gets paramount importance; hence knowledge generated on projects must analytically be incorporated into succeeding projects. However, it is perceived that projects continuously fail to avoid claims efficiently and effectively. The study was approached through a literature review, five case studies, and seven semi-structured interviews with claim consultants, RDA consultants, and project directors. An in-depth study was carried out through content analysis. First, it identified the current practices of claim avoidance, the rescindable nature of claims, and strategies for claim avoidance. It is identified that new strategies need to be developed and applied in claims avoidance in road/highway construction projects. The study revealed that incorporation of lessons learned practices, proper contract document through a centralised project management unit, timely acquisition of land, the establishment of real-time contract duration, effective pre-contract process and site investigation, early intervention of stakeholders, honour the contractual provisions, avoidance of late deliverables, change the attitude towards the claims, and increase the awareness of the RDA consultants are as main strategies for claim avoidance. Further, this research bridges the gap between knowledge and claim avoidance through a lessons-learned system to overcome claims in future projects based on the views of the experts in the field. Computer-based feedback software systems, commercial meetings, and PPR are identified as the best tools for obtaining lessons learned knowledge in foreign-funded road projects in Sri Lanka. This study presents an integrated database information system that can be used to capture and disseminate claim-related information in the form of “lessons learned” to utilise in forthcoming projects. Accordingly, a conceptual framework has been developed for the successful implementation of the system.