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Claims in Construction in Pakistan
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i
NED University of Engineering and Technology, Karachi
Civil Engineering Department
CE-545
Construction Claim Management
Term Paper
Claims in the Construction Industry of Pakistan Issues on the Contractor side and Recommendations for Improvement
Prepared by: Course Instructor: Mr. Waleed Mazhar Kalhoro/CE-107 Prof. Rizwam Ul Haque Farooqui
ii
Abstract
This study was carried out to highlight the issues faced by contractors in Pakistani
construction industry and recommend plausible solution for such. In this study it was found
that there are three major that prevails in Pakistani Construction industry. They are poor and
insufficient documentation, secondly concerned individual with innate knowledge of site
work play mere or no part in generating claims and lastly communication barrier stalls the
claim management pace and entail huge cost. Therefore its recommended that step for
better site work documentation, encouraging concerned people to play their part in claim
preparation and better communication amid Contractors and Engineers should be taken to
scrap of such issues in Pakistani construction industry.
iii
TABLE OF CONTENTS
TITLE PAGE i ABSTRACT ii TABLE OF CONTENTS iii Chapter 1: Introduction 1-2 1.1 Scope 1 1.2 Objective 1 1.3 Methodology 1 1.4 Limits and Exclusions 1 1.5 Term Paper Timeline 2 Chapter 2: Literature Review 3-12 2.1 Introduction 3-4 2.2 Issues amid Claims 4-7 2.2.1 Record keeping and Documentation 4-5 2.2.2 Contract Knowledge 5 2.2.3 Change Orders 6-7 2.2.4 Planning and Schedules 7 2.2.5 Future relations concerns 7 2.3 Claim Management 8-12 2.3.1 Record Keeping and Documentation 8-9 2.3.2 Notification of Change 9 2.3.3 Contract 9-10 2.3.4 Planning and Schedules 10-11 2.3.5 Proactive Action 11-12 Chapter 3: Methodology 12-15
3.1 Record keeping 12-13 3.2 Change Order 13-14 3.3 Contract Knowledge 14 3.4 Claim Preparation 14-15
Chapter 4: Data Analysis 15-16 4.1 Mean 15 4.2 Standard Deviation 15-16 4.3 Importance Index 16 Chapter 5: Results and Discussion 17-24 5.1 Record keeping 17-18 5.2 Extent of use of project documentation 18-19 5.3 Change Order 19-21 5.4 Contract Knowledge 21-22 5.5 Claims Preparation 22-24 5.5.1 Responsibility of Claim preparation 22 5.5.2 Time Involved in preparing Claim 22-23 5.5.3. Cost of preparing claim 23 5.5.4 Reasons for Delay in Claim preparation 24 Chapter 6: Conclusion and Recommendations 24-25 APPENDIX A 26-30 APPENDIX B 31-40 REFERENCES 41
Claims in the Construction Industry of Pakistan
1
1. Term Paper Introduction
1.1 Project Scope
Identifying the reasons behind claim generation and its respective preparation issues
from Contractors perspective in Pakistan construction industry.
1.2 Objective
In the study we will identify reasons incurred by Pakistani contractor for claim
generation and simultaneously study the issues that lingers contractors in the midst of
claim preparation.
1.3 Methodology
1. Firstly Literature Review will be carried out to identify skill and attributes.
2. A questionnaire will be developed, and response will be sought from contractors
3. Statistical analysis will follow to evaluate respondents response; coherence will be
evaluated and key issues will be highlighted.
4. Conclusion will be drawn as per analysis.
5. Recommendation will cease the term paper.
1.4 Limits and Exclusion
Study will be limited to Contractor working within Karachi only.
Statistical analysis will include Mean, Standard Deviation, and Importance Index.
Claims in the Construction Industry of Pakistan
2 Exhibit 1Term Paper Timeline
1.5 Plausible Table of Content
The chronology of Content can be estimated as follow
1. Abstract
2. Literature Review
3. Methodology
4. Result Compilation/Statistical Analysis
5. Analysis and Discussion
6. Conclusion
1.6 Term Paper Time Line
Claims in the Construction Industry of Pakistan
3
2. Literature Review
2.1 Introduction
The term "construction claim" is commonly referred as any application by the contractor
for payment that arises other than under the ordinary contract payment procedures.
Potential of claims rises when the contractor incurs additional costs and/or there is a delay
amid his contract. The clam is an instrument used by contractors to request more time
and/or money. Claims can also originate with the owner and are defined as the assertion
of right to payment arising under the contract for neglect or delay on the part of the
contractor (Jergeas & Hartman, 1994).
Claims may arise during a construction project from numerous reasons. Such reason
include: (Jergeas & Hartman, 1994)
Increase in scope of work pertaining to changes, extras and errors.
Insufficient bid information
Faulty and/or late owner-supplied equipment and material
Inferior quality of drawings and/or specifications, giving rise to ambiguities in contract
requirements.
Insufficient time for bid preparation
Stop-and-go operations because of lack of coordination, design information,
equipment, or material
Work in congested areas and overcrowding
Acceleration to regain schedule
Inadequate investigation before bidding
Claims in the Construction Industry of Pakistan
4
Unbalanced bidding and underestimation.
Authors Dickmann and Nelson have found that the most common causes for a contract
claim are design changes and errors. A comprehensive analysis of claims indicates that 46%
resulted from design errors. An additional 26% were due to either discretionary or
mandatory changes. Thus 72% of all contract claims can be traced to design changes, extra
work, and errors (Jergeas & Hartman, 1994).
Contractors normally adopt a claims-conscious attitude and utilize claims as a profit center
(Hassanein & El Nemr, 2008).
2.2 Issues amid Claims
2.2.1 Record Keeping and Documentation
Contractors generally fail to protect their contractual position in the case of a claim. This
situation arises from failure to completely understand and actively manage the contract,
or failure to keep proper records (Jergeas & Hartman, 1994).
Maintain proper job records on a timely manner including time sheets, diary records,
reports, photographs, records of labors and weather and its effect on progress, progress
of the construction, site instructions, etc. (Zaneldin, 2006).
Proper documentation is imperative for Contractor as they eventually allow them to justify
and quantify requests for adjustment to the contract price and/or duration. Generally it
has been observed that most Contractors dislike paperwork an attitude easily
understood, but difficult to defend in litigation or arbitration. Notice provisions in
contracts are often neglected, extra work is routinely performed without written
authorization (on a limited scale), change orders are not qualified, erroneous or biased
Claims in the Construction Industry of Pakistan
5
minutes of site meetings are not objected to, self-serving letters are left unanswered,
written notes of important telephone conversations or verbal instructions are rarely
maintained, and contractual defaults by the owner are not documented or confirmed by
letter. (Jergeas & Hartman, 1994).
In a research conducted in the UK concerning the reasons for consultants' rejection of
contractors' claims, one of the main causes were poor information systems and
documentation practices by contractors (Vidogah & Ndekugri, 1997).
A cultural factor has been identified as a possible cause for the lack of notification and
documentation in construction sector, namely the "fear of consultant phenomenon"
(Hassanein & El Nemr, 2008).
2.2.2 Contract Knowledge
All too often contractors do not read the contract document before bidding and, in many
instances, not even when they execute the document. Its imperative that contractors'
site superintendent should fully review the contract documents and compare them with
those that were bid; (Jergeas & Hartman, 1994).
A significant number of contractors do not quote a contract clause when preparing a claim
(Hassanein & El Nemr, 2008)
In the event of ambiguity, the courts of most jurisdictions will decide against the author
of a contract, this was assumed to stem form their lack of knowledge with contract and
its relevant clauses (Hassanein & El Nemr, 2008).
Claims in the Construction Industry of Pakistan
6
2.2.3 Change Orders
Change order claims constitute the majority of claims in the industrial sector, as they
represent approximately 54 percent of the total number of claims (Hassanein & El Nemr,
2008).
Site supervisors should not develop the habit of waiving claim rights by negotiating and
signing off on change orders that pay part of the extra costs. If the site superintendent
cannot assess in detail the aforementioned impact costs at the time of issue, contractors
must consider indicating that the change only covers the direct costs incurred in
performing the work and should formally preserve their right to recover other costs
associated with the added work at a later date (Jergeas & Hartman, 1994).
Have signed change orders before starting doing these changes on site (Zaneldin, 2006).
Oral change order have to contractual weight (Hassanein & El Nemr, 2008). The
relationship between oral change orders and documentation is that frequent verbal
instructions with no supporting documentation bar the contractor from recovering the
associated incurred expenses (Hassanein & El Nemr, 2008).
Two Canadian construction lawyers advise contractors to include the following two
qualifications in the change-order quotation to preserve the contractor's right to bring the
impact claim of the cumulative effect of change orders later (Jergeas & Hartman, 1994):
'We hereby reserve all our rights to claim subsequently for the costs, of any nature
whatsoever, other than direct costs, associated with the performance of this extra work
and the delays which may result. (Blaikie 1986)
Claims in the Construction Industry of Pakistan
7
"The above price does not include any impact or delay costs that may result from this
change in the work or from the cumulative effect of this and other changes, and the right
to claim such costs is hereby reserved." (Kenny 1990).
2.2.4 Planning and Schedules
Finishing a project on schedule is a difficult task to accomplish in the uncertain, complex,
multiparty, and dynamic environment of construction projects (Zaneldin, 2006)
Planning is pivotal amid project, and must be based on clearly defined objectives. With
proper planning, adequate resources are timely available, adequate time is allowed for
each activity. Planning and scheduling should be cost effective, simple, and practical
(Jergeas & Hartman, 1994).
Scheduling techniques range from simple hand-drawn bar charts to computerized
network analysis. The most suitable presentation of schedules for contractors is the bar
chart, which should be based on the critical path method (CPM) (Jergeas & Hartman,
1994).
2.2.5 Future relation concerns
Contractors sometimes waive their contractual rights due to fear of bruising their business
relations with the owners and consultants, which could affect their chances as candidates
for future potential projects (Hassanein & El Nemr, 2008). Fear of losing bargaining power
of the Client and the Engineers, were highlighted as limits of the external environment
(Klee, 2013).
Claims in the Construction Industry of Pakistan
8
2.3 Claim Management
1. Record Keeping and Documentation
Records and documentation play a very important role in the settlement of contract claims
(Chovichien, n.d.). "The paperwork" is an important part of project management and
claims have to be solved in formal way (Klee, 2013).
Contractors must establish and maintain a good record-keeping system that documents
job progress and problems as they occur. Such a record system should monitor cost, time,
scope, and quality. Daily-progress reports should be kept and should indicate the date,
weather and temperature, type of work in progress and quantities produced, and
hindrance to job progress and by whom. Photographs and video films (in cases where not
prevented by contract documents) should be taken on a routine basis (dated and with
commentary) to show construction progress, site conditions, and particular problems
encountered (Jergeas & Hartman, 1994).
One of the most important tools for proper documentation management is the use of
daily records from the site team, particularly if these documents were signed by the
consultant (Hassanein & El Nemr, 2008).
Record should be maintained in form of memoranda pertaining to conversations,
inspections, directions, or observations. Further records of correspondence between
parties to the contract; minutes of weekly job-site meetings and other meetings; notes of
telephone conversations, progress-billing certificates and all data submitted to support
such requests; cost and productivity reports; delivery reports of owner-supplied material
and equipment; diaries; job schedules (periodically updated); transmittals; drawings and
Claims in the Construction Industry of Pakistan
9
specifications; shop drawings; vendors' drawings and specifications; change orders and
associated documentation; inspection reports; and accident and site safety reports
(Jergeas & Hartman, 1994).
Another form of record management is that of information technology system within the
organization. Electronic document management systems allow information stored in
different forms to be linked and accessed in a flexible manner (Vidogah & Ndekugri, 1997).
It is recommended that contract awareness should not be restricted to high-level site
management, but should be directed to site engineers directly dealing with the consultant
or owner's representative (Hassanein & El Nemr, 2008).
2. Notification of Change
Construction claim notification involves alerting the other party a potential problem in a
manner that is non-adverserial. Time limit requirements are very crucial and critical
(Chovichien, n.d.). An initial letter of a claim notice to the other should be concise, clear,
simple, conciliatory, and cooperative. It should indicate the problem and alert the other
party of the potential increase in time or cost (Kululanga, et al., 2001)
3. Contract
Articles in the section of the contract entitled "General Conditions" dealing with the
following matters should be considered to ensure the contract is complete with respect
to the terms and conditions to have a dispute mechanism (Jergeas & Hartman, 1994):
a. Changes/extras
b. Disputes
c. Disclaimer
Claims in the Construction Industry of Pakistan
10
d. Authority/roles/definitions
e. Soil/sit conditions
f. Delay
g. Payment
h. Notice provisions.
To enhance the chances of success, contractors submitting claims must closely follow the
steps stipulated in the contract conditions, provide a breakdown of alleged additional
costs and time, and present sufficient documentation (Zaneldin, 2006).
Clauses regarding the requirements for documenting minutes of meetings as well as
exchanged correspondence should be included in contracts. In case of either party's
failure to fulfill such contract requirements, it should be clearly stated that the party at
fault must waive its right regarding the matter in request (Hassanein & El Nemr, 2008).
Have a clearly written contract with no ambiguity, read the contract several times before
signing it, to understand any unclear clauses, its advised that a third party should be asked
to read contract documents before the bidding stage. Use special contracting provisions
and practices that have been used on past projects, which proved to be successful in
avoiding and resolving disputes during construction (Zaneldin, 2006).
4. Planning and Schedules
The regular updates and issuance of the schedule to the owner is a very effective
communication tool and is generally considered to satisfy the legal requirements for
providing notice of problems and associated delays (Jergeas & Hartman, 1994).
Claims in the Construction Industry of Pakistan
11
The schedule can be used to determine the impact of changes to the plan and to establish
a cause-and-effect relationship in a claim situation, i.e. the impact of delays, reduced or
increased resources, scope changes, resequencing and other workflow changes to current
activities (Jergeas & Hartman, 1994).
5. Proactive Action
Contractors' site supervisors and project managers should consider the following
proactive steps to protect contractors' interests and reduce liability (Jergeas & Hartman,
1994):
1. Request appropriate extension of time whenever significant events occur which may
entitle you to an extension of time and make it clear who pays for the costs of
extended duration.
2. Make it clear who pays for acceleration.
3. Respond as quickly as possible to every complaint initiated by the owner.
4. Analyze job progress in detail prior to any job-site-progress meetings that are held.
Such meetings should be used as a forum for discussing and notifying potential or
current delays, extra work, etc.
5. Record in detail all delays and man-hours lost, conflicts, and discrepancies. Inform the
owner when delays occur so that the contractor does not incur responsibility due to
lack of information.
6. Carefully read all correspondence and minutes of meetings and promptly record any
disagreements you may have with them.
Claims in the Construction Industry of Pakistan
12
7. Obtain written confirmation of all oral directives issued by the owner or engineer. If
they do not confirm in writing, the contractor should write a confirmation letter to
them.
8. Forward any significant information received from or sent to the owner to senior
management so that they can keep current with the project and determine if further
specific activity is required
9. Wait for authorization before proceeding with changes and extras. Without proper
directive to do such work, contractors will typically be deemed to be a volunteer in the
performance of the extra work and may not be paid.
10. Qualify the basis of, and limitations to, the pricing of your change.
Gregorc and Weiner (2009) mention that within a project of certain value there should be
a resident Claim Manager on the project team. This specialist would be responsible for CM
(Klee, 2013).
3. Methodology
3.1 Record Keeping
To ascertain proper paperwork amid construction endeavor, we asked whether they had
defined, isolated and tangible procedure of maintaining site paperwork.
In order to evaluate contractor keenness in timely maintenance of daily reports and other
related paper works pertaining to site works, we asked them to rate their answer on scale
of 1-4, with 1-never, 2-sometimes, 3-mostly and 4-always
In order to evaluate the extent of how many time contractors did lose their claim (given
any claim was ever filled) or faced difficulties in defending their claims in litigation,
Claims in the Construction Industry of Pakistan
13
pertaining to insufficient data provided at their end, we asked contractor to rate such
instance on a Likert scale of 1-5. Where 1-Always, 2-mostly lost/ faced difficulties, 3-Never
filled any claim, 4-few times lost/faced difficulties and 5-Never.
Further we inquired of contractor of any electronic document management system
(EDMS) or any software of same essence.
Lastly contractor were asked to rate extent of use of Project documentation while
preparing claim, for this reason 12 different documents were rated on a scale of 1-4, with
1-never used, 2-sometime used, 3-moderatly used and 4-always used.
3.2 Change Orders
In order to evaluate the frequency of change order received from client, we asked
contractor to rate the extent of such frequency on scale of 1-4, where 1-never received, 2-
sometimes received, 3-most of times, 4-all the times.
Contactor were also asked whether they used to issue notification before commencing
work on change order, oral change order or any other change exercised.
We also inquired contractors of any oral change order and their respective frequency,
similarly the responses were rated on scale of 1-4, with 1-never received, 2-sometimes
received, 3-most of times, 4-all the times.
Further we evaluated the extent to which contractor succeeded in defending such oral
change amid claims, similarly the responses were rate on a scale of 1-4, with 1-never
defended, 2-sometimes defended, 3-most of times defended and 4-always defended.
Claims in the Construction Industry of Pakistan
14
Were there any occasions where contractor waived it right by signing of change order
without explicitly mentioning cost and time repercussion, for such we asked contactors in
affirmation or negation.
3.3 Contract Knowledge
We asked contractors to rate the extent to which they study and analyze bidding
documents. Reponses were evaluated on percentage of document studied, i.e. 0-30%, 30%-
50%, 50%-80% and 80%-100%.
In order to evaluate the contractors knowledge pertaining to bidding documents, we
asked them whether they had included the claim clause when filing such claims.
3.4 Claim Preparation
The preparation and evaluation of claims require some effort and skill on the part of the
contractor. Naturally the level of skill and experience applied to the claims management
function can determine the success or failure of the claim (Vidogah & Ndekugri, 1997).
In order to evaluate the extent to which different entities of contractors involved during
claim management, we asked contractor to rate the involvement of each professional on
a Likert scale of 1-5.
Where 1-no involvement, 2-meagre involvement, 3-no concerned, 4-moderate
involvement and 5-total involvement
Preparation of claims is a tedious process. For such reason contractors tend to leave claims
until project completion (Vidogah & Ndekugri, 1997). With that in mind contractors were
asked to rate eight aspects of the claims preparation process in term of time involved,
Claims in the Construction Industry of Pakistan
15
responses were evaluated on a scale of 1-4, with 1-readily available 2-minimum time
required, 3-moderate amount of time, 4-huge amount of time.
Further contractor were asked to rate the cost incurred pertaining to acquisition of
different information, for that reason similar 8 aspect were rated on scale of 1-4, with 1-
very cheap, 2-meagre cost 3-substantial cost 4-very costly.
Reason for delay amid claim preparation were also evaluated, for this reason 10 reason
were rated on a scale of 1-4, with 1-not responsible, 2-mere responsible, 3-moderately
responsible and 4-very much responsible.
4. Data Analysis
Statistical analysis included Mean, Standard Deviation, and Importance Index.
4.1 Mean
Mean ranking (where applicable) was calculated for each case, using following expression.
Calculation of mean was of prime importance in calculating importance index, which
would ultimately rank particular options under various heads.
=
Where;
ai= Rank by each respondent.
4.2 Standard Deviation
Standard Deviation evaluates the extent of variation or dispersion from the average.
Following expression is used for the purpose
= [( )]
Claims in the Construction Industry of Pakistan
16
Where
= Standard Deviation
= mean
X = Individual Rank by respondents.
4.3 Importance Index
Information incurred from respondent was used to develop an Importance Index (II). In
calculating Importance Index (II) mean and standard deviation were calculated. Numerical
score of each option from various heads were converted into relative importance index to
assess the relative ranking.
The importance index will be calculated using following calculation
, (0 1)
Where
w = average weighting given to each factor by the respondent, in our
different heads were evaluated on scale of 1-5, and 1-4, for case where scale was 1-5, 1
being least respective rank 5 being most respective rank, similar is the case for scale of
1-4 scale.
A = the highest weighting; and
N = the total number of respondents
Claims in the Construction Industry of Pakistan
17
5. Results and Discussion
5.1 Record Keeping
As part of my research I intended to know to what extent, contractors austerely maintain
daily reports and other paperwork related to site work, upon research it was found out
that 47% of contractors never or sometimes
maintain such documents. In the absence of
any tangible, concrete and timely
maintained data indigenous to site, this fact
could be established with certainty that any
resulting efforts will prove to be tedious and
in worst case scenario futile to defend contractors claim. However this condition is
balanced , but such condition cant be classified as promising because basic site paperwork
are essential and pivotal when it comes to claims, especially in Contractors perspective.
In continuum with previous discussion, Contractors were also inquired about instances
where they failed to defend their claim pertaining to insufficient data, the results
advocates for previous discussion. The
biggest number amid this paradigm is where
contractors never filed a claim, this situation
could be traced back to our previous
discussion where almost half of time
contactors dont maintain timely site
paperwork, and in such situation where
Never12%
Sometimes
35%
Mostly18%
Always35%
TIMELY_MAINTAIN
Always Lost12% Mostly
Lost/faced
difficulties
24%Never filled a claim35%
Few times
lost/faced
difficulties
29%
INSUFFICIENT DATA
Claims in the Construction Industry of Pakistan
18
contractor lack the prove, filling a claim would be adding insult to injury. Upon research
36% of Contractor always lost or mostly faced difficulties proving their claim, such situation
is another testament to previous discussion. Holistically speaking its a 70-30 ratio where
contractor lost or faced difficulties amid proving their claim.
Lastly we inquired is there were any
Electronic Document Management System
or any sort prevalent amid contractors, and
results were no different than previous
situation, 82% of the contractors asked,
answered in negation of any EDM system
prevailing in their company, with so much
complexity and huge quantum of information, contractor should seek an EDM system to
timely and prudently maintain there documentation, which could yield favorable
outcomes for them and even result in profitability.
5.2 Extent of use of project documentation
One needs tangible data to substantiate it claims. Therefore in order to substantiate their
claim contractors were asked to rate the extent of usage of particular project
documentation. Results indicate that revised drawings, conditions of contract and
specifications are most intensely used documentation. It is fair to say all these
documentation are drafted during the phase where conflicts are minimal or absent, such
documents are based on assumption and by the book, referring such documents while
preparing a claim will not be wise decision, because any claim that arises is because of the
Yes18%
No82%
EDMS
Claims in the Construction Industry of Pakistan
19
disparity amid whats written and whats been done, and since youre not using any
documents to highlight the second part which whats been done, you cant balance the
situation and resultantly will face backlash when preparing and defending a claim. Results
show that contractors merely used site diaries and minutes of site meeting to substantiate
their claims, and such information is most useful in defending what actually happened on
site.
Document Importance Index Rank
Bill of quantity 0.779 4
Claim documentation 0.691 10
Minutes of Site meetings 0.721 10
Schedules 0.750 7
Photographs 0.765 6
Site Diaries 0.691 10
Conditions of Contract 0.853 2
Correspondence 0.779 4
Daily Diaries 0.662 12
Records of Delay and Disturbance 0.721 8
Specification 0.794 3
Revised Drawings 0.912 1
5.3 Change Orders
Change order are integral part of
construction business, there is hardly a
project where contractors dont taste the
medicine of change order. Upon research
94% of contractors received a change order
differing in frequency. Such a fact
Never received
6%
sometimes
received47%
Most of the times received
23%
All the times
received24%
CHANGE_ORDER
Claims in the Construction Industry of Pakistan
20
adamants that there is a dire need to establish a protocol where contractors are at better
place to defend any discrepancies resulting from change orders.
Another nightmare for contractors are Oral Change orders, there frequency is no more
different or should I say more than formal
change orders. It is evident that there was no
contractor who did not received an oral
change order, all contractors asked, did
received an oral change order with differing
frequencies. Further we also enquired to
what extent were such change orders defended successfully, results depicts that 88% of
contractor never or sometimes defended their oral change orders. 29% of never defending
oral change order is quite evident and self-explanatory however 59% of contractors stating
that they sometimes succeed in defending their change oral change order, was further
enquired and they stated that only payments
were reimbursed on the basis on quantum
majeure. Thus its imperative that contractors
should seek a formal change order, however
pertaining to local hiccups contractor cant
afford such a luxury pertaining to social and
time issues.
sometimes
received35%
Most of the times received
35%
All the times
received30%
OCO_RECEIVED
Never defended
29%
sometimesdefend
ed59%
Most of the times defended
12%
OCO_DEFENDED
Claims in the Construction Industry of Pakistan
21
Further contractor were asked, were there any
occasions where they waived their right by
signing of change order without explicitly
mentioning cost and time repercussion, results
are promising with 76% of contractors answering
in negation.
5.4 Contract Knowledge
Studying bidding documents is tedious yet imperative job, upon research this fact was
established that 47% of Contractors study about
50% of the bidding documents, with 12% on
contractors only studying 0-30% of bidding
documents such dismal study of bid documents
from substantial amount of contractors is
alarming and astonishing, such inferior
information of bidding document lead contractors
into Claim dilemma. Again relevant situation is
balanced, but balanced is not an option here
contract bid documents are core document and
every other contemporary document finds its
foundation on bid documents, therefore
contractors must show resolve on studying bids
Yes24%
No76%
WAIVING_CLAUSE
0%-30%12%
30%-50%35%
50%-80%29%
80%-100%24%
BID STUDYING
Yes65%
NO35%
CLAIM CLAUSE ADDITION
Claims in the Construction Industry of Pakistan
22
documents to their fullest. Also 65% of contractors add a claim clause when preparing a claim,
and 35% dont. Such number should be higher.
5.5 Claim Preparation
5.5.1 Responsibility of Claim preparation
Contractors rated different entities amid contractors on the extent to which they play a part
in preparing a claim. Results indicates that claim managers and project manager are the most
enthusiast in preparing a claim, while site engineer is least involved in preparing a claim.
Project Manager even though heads the project, but he doesnt have any firsthand
information of site work similar is the case with Claim Manager, he is completely alien to site
work, still they are mostly involved in preparing a claim, on the other hand site engineer who
has firsthand and indigenous information pertain to site work is least used when preparing a
claim, such a situation is self-explanatory where most suited individual is absent in the process
of claim preparation and individuals with merge and alien knowledge are most enthusiast
while preparing a claim.
Staff Importance Index Rank
Project Manager 0.282 2
Project Quantity Surveyor 0.211 5
Head Office-based Quantity Surveyor 0.236 3
Site Engineer 0.166 7
Claim Manager 0.283 1
External Claim Consultants 0.186 6
Others 0.236 3
5.5.2 Time Involved in preparing Claim
Time is of essence, so is the case while preparing a claim. Contractors were asked to rate the
extent of time involved in preparing claim. Results indicate that most time consuming aspect
Claims in the Construction Industry of Pakistan
23
of preparing claim are responses to architect/Engineers request for information and
quantifying claim, indicating lack of timely correspondence amid engineer and contractor and
also lack of specific knowledge of quantifying claim. Interpretation of contract took the least
amount of time, referring to innate knowledge contractors possess about contract.
Aspect of Claim preparation Importance Index Rank
Identifying relevant information 0.721 6
Identifying sources of information 0.779 3
Retrieving relevant information 0.706 7
Archiving relevant information 0.725 5
Interpretation of contract and justifying claim 0.686 8
Responses to architect/engineers request for information 0.804 2
Quantifying claims 0.824 1
Prepare claim documentation for claims 0.745 4
5.5.3 Cost of preparing Claim
Cost is something that imparts everybody and money is something that everybody holds most
dear. For that reason contractors were asked to indicate which aspects of claim preparation
entails the most cost. Results depicts that quantifying claim and responses to
architect/Engineers request for information are the most costly and preparing
documentation for presentation are cheapest. Such result are coherent with above
discussion, things taking the most time, are the things requiring the most capital while
preparing a claim.
Aspect of Claim preparation Importance Index Rank
Identifying relevant information 0.647 5
Identifying sources of information 0.603 6
Retrieving relevant information 0.691 3
Archiving relevant information 0.691 3
Interpretation of contract and justifying claim 0.603 6
Responses to architect/engineers request for information 0.706 2
Quantifying claims 0.721 1
Prepare claim documentation for claims 0.544 8
Claims in the Construction Industry of Pakistan
24
5.5.4 Reasons for Delay in Claim Preparation
Analysis shows that most responsible reasons for delays are awaiting responses from
architect/engineer, poor records and lack of contemporary records, in that order.
Reason for delay in preparing claim Importance Index Rank
Lack of resources 0.676 7
Showing cause and effect 0.721 5
Lack of contemporary records 0.765 3
Poor records 0.809 2
Identifying and retrieving information 0.765 3
Awaiting responses from architect/engineer 0.868 1
Time limitations 0.706 6
Others 0.544 8
6. Conclusion and Recommendation
During the course of research, this fact could be established with certainty that
contractors have issues pertaining to claims and their respective management, however
the essence of issues of point of debate. Some issues are inherent to construction industry
in Pakistan, yet some issues could be rectified with proper and austere efforts. Upon
research it was found that contractor faced three essential issues concerning claim
management;
1. Poor or no documentation of site work, only documentation would not suffice here,
real issue is their timely maintenance.
2. Lack of communication amid Engineer/Architect and Contractor, once again timely
communication is imperative.
3. Lastly concerned individuals are not enthusiastically while preparing claim for instance
in our research Project Managers and Claim Manager were intensely involved in
Claims in the Construction Industry of Pakistan
25
preparing claims and site engineer , individual with indigenous knowledge of site is
least involved.
Therefore its recommended that issues highlighted above should be catered for with
following recommendation is curbing such issues. In order to eradicate the ever
lingering menace of poor and insufficient documentation, contractors should establish
a program that should motivate concerned individuals to maintain austere site
documentation. An EDM system could aide in this regard as Contraction Industry is on
the road of spurt and complexity.
Further, concerned individuals should be allowed to play their pivotal part while
preparing claim, as they possess first hand and innate knowledge pertaining to site
work. Lastly more efficient way of communication should be established amid
Contractors and Engineers, and if necessary such communication should be bound by
some contractual provisions, violation of such should be punishable by law.
Claims in the Construction Industry of Pakistan Appendix A
26
Claims in the Construction Industry of Pakistan Issues on the Contractor side and Recommendations for Improvement
In the study we will identify reasons incurred by Pakistani contractor for claim generation and simultaneously study the issues that lingers contractors in the midst of claim preparation.
Name Designation
Company Current Project
Record Keeping
Do you timely maintain daily reports and other related paper works pertaining to site works
o Never o Sometimes o Mostly o Always On how many instances you lost or faced difficulties to defend your claim for insufficient data provided?
o Always Lost o Mostly lost/faced difficulties
o Never filed a claims
o Few times lost/faced
difficulties o Never lost
Is there a prevalent electronic document management system or any sort in your organization?
o Yes o No Rate the extent to which following project documentation were used while preparing claim
1. Bills of Quantity
o Never used o Sometimes used o Moderately used o Always used 2. Claim Documentation
o Never used o Sometimes used o Moderately used o Always used 3. Minutes of Site meeting
o Never used o Sometimes used o Moderately used o Always used 4. Schedules
o Never used o Sometimes used o Moderately used o Always used 5. Photographs
o Never used o Sometimes used o Moderately used o Always used 6. Site diaries
o Never used o Sometimes used o Moderately used o Always used 7. Conditions of Contract
o Never used o Sometimes used o Moderately used o Always used
Claims in the Construction Industry of Pakistan Appendix A
27
8. Correspondence
o Never used o Sometimes used o Moderately used o Always used 9. Daily diaries
o Never used o Sometimes used o Moderately used o Always used 10. Records of Delay and disturbance
o Never used o Sometimes used o Moderately used o Always used 11. Specification
o Never used o Sometimes used o Moderately used o Always used 12. Revised Drawings
o Never used o Sometimes used o Moderately used o Always used Change Orders
State the extent of frequency of Change Orders received from Owner/Engineer
o Never received o Sometimes received o Most of the times o All the time State the extent of frequency of Oral Change Orders received from Owner/Engineer
o Never received o Sometimes received o Most of the times o All the time How many times were you able to defend such oral change orders during claims?
o Never defended o Sometimes defended
o Most of the times o Always defended Were there any occasions where you as a contractor waived your right by signing of change order without explicitly mentioning cost and time repercussion?
o Yes o No Contract Knowledge
Rate the extent to which you thoroughly study bidding documents
o 0-30% o 30%-50 o 50%-80% o 80%-100%. Do you add claim clause from the contract when filing a claim?
o Yes o No
Claims in the Construction Industry of Pakistan Appendix A
28
Claim Preparation Rate the extent of involvement of following entities of contractors involved during claim preparation.
Project Manager
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
Project Quantity Surveyor
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
Head office based quantity surveyor
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
Site Engineer
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
Claim Manager
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
External Claim Consultants
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
Others Involved
o No Involvement
o Meagre Involvement
o Not Concerned
o Moderate Involvement
o Total involvement
Rate the flowing eight aspects of the claims preparation processes in term of time involved
1. Identifying relevant information
o Readily available o Minimum time required
o Moderate time required
o Huge amount of time required
2. Identifying sources of information
o Readily available o Minimum time required
o Moderate time required
o Huge amount of time required
3. Retrieving relevant information
Claims in the Construction Industry of Pakistan Appendix A
29
o Readily available o Minimum time required
o Moderate time required
o Huge amount of time required
4. Archiving relevant information
o Minimum time required o Moderate time required o Huge amount of time required 5. Interpretation of contract and justifying claim
o Minimum time required o Moderate time required o Huge amount of time required 6. Responses to architect/engineers request for information
o Minimum time required o Moderate time required o Huge amount of time required 7. Quantifying claims
o Minimum time required o Moderate time required o Huge amount of time required 8. Prepare claim documents for presentation
o Minimum time required o Moderate time required o Huge amount of time required Rate the cost incurred pertaining to acquisition of different information to prepare claim
Identifying relevant information
o Very cheap o Meagre cost o Substantial cost o Very costly Identifying sources of information
o Very cheap o Meagre cost o Substantial cost o Very costly Retrieving relevant information
o Very cheap o Meagre cost o Substantial cost o Very costly Archiving relevant information
o Very cheap o Meagre cost o Substantial cost o Very costly Interpretation of contract and justifying claim
o Very cheap o Meagre cost o Substantial cost o Very costly Responses to architect/engineers request for information
o Very cheap o Meagre cost o Substantial cost o Very costly Quantifying claims
o Very cheap o Meagre cost o Substantial cost o Very costly Prepare claim documents for presentation
o Very cheap o Meagre cost o Substantial cost o Very costly
Claims in the Construction Industry of Pakistan Appendix A
30
Rate the following 10 reason for delay in claim preparation
Lack of resources
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Showing cause and effect
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Lack of contemporary records
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Poor records
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Identifying and retrieving information
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Awaiting responses from architect/engineer
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Time limitations
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Other
o Not responsible o Mere responsible o Moderately responsible
o Very much responsible
Claims in the Construction Industry of Pakistan Appendix B
31
Respondents (Contractors) Response Compilation
Timely
maintain Insufficient
data EDMS BOQ
Claim Documentation
Minutes Site
Meeting Schedules Photographs
Site Diaries
Contract Condition
Correspondence Daily
diaries Delay
records
1 Always Few times lost/faced difficulties
No Always
used Always used Never Used
Always used
Never Used Sometimes
Used Always used Always used
Always used
Sometimes Used
2 Sometimes Mostly
Lost/faced difficulties
No Moderately
Used Moderately
Used Always
used Always
used Always used
Sometimes Used
Always used Moderately
Used Sometimes
Used Always
used
3 Always Never filled
a claim No
Moderately Used
Sometimes Used
Moderately Used
Moderately Used
Always used Always
used Always used Always used
Moderately Used
Moderately Used
4 Sometimes Never filled
a claim No
Sometimes Used
Moderately Used
Sometimes Used
Sometimes Used
Sometimes Used
Always used
Moderately Used
Moderately Used
Sometimes Used
Sometimes Used
5 Never Always
Lost No
Never Used
Sometimes Used
Moderately Used
Sometimes Used
Sometimes Used
Sometimes Used
Moderately Used
Moderately Used
Never Used
Never Used
6 Always Never filled
a claim No
Always used
Always used Sometimes
Used Always
used Always used
Sometimes Used
Always used Always used Sometimes
Used Moderately
Used
7 Always Few times lost/faced difficulties
Yes Moderately
Used Always used
Always used
Always used
Always used Always
used Always used Always used
Always used
Always used
8 Mostly Few times lost/faced difficulties
Yes Sometimes
Used Moderately
Used Always
used Moderately
Used Always used
Sometimes Used
Moderately Used
Always used Moderately
Used Always
used
9 Sometimes Mostly
Lost/faced difficulties
No Always
used Always used
Sometimes Used
Sometimes Used
Never Used Sometimes
Used Moderately
Used Sometimes
Used Sometimes
Used Never Used
10 Always Never filled
a claim No
Always used
Never Used Always
used Always
used Sometimes
Used Sometimes
Used Moderately
Used Moderately
Used Sometimes
Used Always
used
11 Sometimes Mostly
Lost/faced difficulties
No Sometimes
Used Sometimes
Used Sometimes
Used Sometimes
Used Moderately
Used Moderately
Used Moderately
Used Moderately
Used Moderately
Used Moderately
Used
12 Sometimes Never filled
a claim No
Sometimes Used
Never Used Sometimes
Used Moderately
Used Moderately
Used Sometimes
Used Sometimes
Used Never Used
Never Used
Moderately Used
13 Mostly Never filled
a claim Yes
Moderately Used
Sometimes Used
Always used
Moderately Used
Always used Always
used Moderately
Used Always used
Moderately Used
Always used
14 Never Mostly
Lost/faced difficulties
No Always
used Never Used
Sometimes Used
Never Used
Always used Sometimes
Used Always used
Sometimes Used
Sometimes Used
Moderately Used
15 Mostly Few times lost/faced difficulties
No Always
used Moderately
Used Always
used Always
used Always used
Moderately Used
Always used Always used Moderately
Used Moderately
Used
Claims in the Construction Industry of Pakistan Appendix B
32
16 Always Few times lost/faced difficulties
No Always
used Always used
Always used
Always used
Always used Always
used Always used Always used
Always used
Always used
17 Sometimes Always
Lost No
Always used
Always used Sometimes
Used Sometimes
Used Sometimes
Used Moderately
Used Moderately
Used Never Used
Always used
Never Used
Specification Revised drawing
Change Order
OCO recieved
OCO defened
CO clause
Bidding study
Clause Claim
Project Manager
Project QC
Headoffice QC
Site engineer
Claim Manager
1 Always used Always used All the times
received
All the times
received
Sometimes defended
No 80%-100% Yes Moderate
Involvement Total
Involvement Meagre
Involvement Total
Involvement Meagre
Involvement
2 Moderately
Used Always used
sometimes received
All the times
received
Sometimes defended
No 80%-100% Yes Moderate
Involvement Moderate
Involvement Moderate
Involvement Total
Involvement Total
Involvement
3 Always used Always used All the times
received
sometimes received
Most of the times defended
Yes 30%-50% NO Moderate
Involvement Moderate
Involvement Moderate
Involvement Moderate
Involvement Moderate
Involvement
4 Sometimes
Used Always used
Most of the times received
All the times
received
Never defended
No 30%-50% NO Meagre
Involvement Moderate
Involvement Moderate
Involvement Moderate
Involvement Meagre
Involvement
5 Sometimes
Used Sometimes
Used Never
received sometimes
received Sometimes defended
No 0%-30% Yes No
Involvement Moderate
Involvement No
Involvement Not
Concerned Meagre
Involvement
6 Always used Always used Most of
the times received
Most of the times received
Sometimes defended
No 50%-80% Yes Total
Involvement Total
Involvement Total
Involvement Moderate
Involvement Total
Involvement
7 Always used Moderately
Used
Most of the times received
Most of the times received
Sometimes defended
No 50%-80% Yes Total
Involvement Not
Concerned Moderate
Involvement Total
Involvement Total
Involvement
8 Moderately
Used Always used
sometimes received
Most of the times received
Sometimes defended
No 50%-80% NO Moderate
Involvement Moderate
Involvement Total
Involvement Moderate
Involvement Total
Involvement
9 Sometimes
Used Always used
All the times
received
All the times
received
Never defended
No 0%-30% Yes Not
Concerned Moderate
Involvement Meagre
Involvement Total
Involvement Meagre
Involvement
10 Always used Moderately
Used sometimes
received
Most of the times received
Never defended
No 50%-80% NO Not
Concerned Meagre
Involvement Moderate
Involvement Meagre
Involvement No
Involvement
11 Moderately
Used Moderately
Used
Most of the times received
sometimes received
Most of the times defended
Yes 30%-50% Yes Moderate
Involvement Moderate
Involvement Moderate
Involvement Moderate
Involvement Moderate
Involvement
12 Sometimes
Used Always used
sometimes received
sometimes received
Never defended
No 30%-50% NO Not
Concerned Moderate
Involvement Meagre
Involvement Total
Involvement Moderate
Involvement
13 Sometimes
Used Moderately
Used sometimes
received
Most of the times received
Sometimes defended
Yes 30%-50% Yes Total
Involvement Total
Involvement Moderate
Involvement Moderate
Involvement Total
Involvement
Claims in the Construction Industry of Pakistan Appendix B
33
14 Moderately
Used Always used
sometimes received
Most of the times received
Sometimes defended
Yes 30%-50% NO No
Involvement No
Involvement Moderate
Involvement Moderate
Involvement Moderate
Involvement
15 Always used Always used sometimes
received sometimes
received Sometimes defended
No 80%-100% Yes Total
Involvement Total
Involvement Moderate
Involvement Moderate
Involvement Total
Involvement
16 Always used Always used sometimes
received sometimes
received Sometimes defended
No 80%-100% Yes Not
Concerned Moderate
Involvement Moderate
Involvement Total
Involvement Moderate
Involvement
17 Always used Always used All the times
received
All the times
received
Never defended
No 50%-80% Yes No
Involvement Moderate
Involvement Meagre
Involvement Total
Involvement Meagre
Involvement
Claim
Consultants Others
involved Identify
info Identify sources
Retrieve info
Archiving info
Interpretation _contract
Architect response
Claim quantifying
Prepare claim
Identify info_1
Identify sources_1
Retrieve info_1
1 Moderate
Involvement Not
Concerned
moderate time
required
huge time required
huge time
required
moderate time
required
minimum time required
huge time required
huge time required
moderate time
required very cheap very cheap
Substantial cost
2 Total
Involvement Meagre
Involvement
moderate time
required
moderate time
required
moderate time
required
huge time required
huge time required
huge time required
huge time required
moderate time
required
Substantial cost
very costly Substantial
cost
3 Moderate
Involvement Moderate
Involvement
minimum time
required
moderate time
required
minimum time
required
huge time required
moderate time required
moderate time
required
moderate time
required
moderate time
required
Substantial cost
meagre cost Substantial
cost
4 Moderate
Involvement No
Involvement
huge time
required
huge time required
minimum time
required
moderate time
required
moderate time required
huge time required
huge time required
minimum time
required
Substantial cost
Substantial cost
Substantial cost
5 Meagre
Involvement Not
Concerned
moderate time
required
moderate time
required
moderate time
required
moderate time
required
moderate time required
moderate time
required
minimum time
required
minimum time
required
meagre cost
meagre cost Substantial
cost
6 Meagre
Involvement Moderate
Involvement
moderate time
required
minimum time
required
moderate time
required
minimum time
required
huge time required
huge time required
moderate time
required
moderate time
required
meagre cost
Substantial cost
meagre cost
7 Total
Involvement Moderate
Involvement
moderate time
required
huge time required
huge time
required
moderate time
required
huge time required
huge time required
moderate time
required
huge time required
Substantial cost
Substantial cost
Substantial cost
8 Not
Concerned Not
Concerned
minimum time
required
moderate time
required
minimum time
required
huge time required
huge time required
moderate time
required
huge time required
huge time required
Substantial cost
meagre cost Substantial
cost
9 Total
Involvement Not
Concerned
moderate time
required
moderate time
required
moderate time
required
huge time required
moderate time required
huge time required
huge time required
huge time required
Substantial cost
Substantial cost
Substantial cost
10 Moderate
Involvement No
Involvement
huge time
required
moderate time
required
moderate time
required
moderate time
required
moderate time required
huge time required
huge time required
moderate time
required
Substantial cost
meagre cost meagre
cost
11 Moderate
Involvement Moderate
Involvement
moderate time
required
minimum time
required
moderate time
required
moderate time
required
moderate time required
moderate time
required
moderate time
required
moderate time
required
Substantial cost
Substantial cost
Substantial cost
Claims in the Construction Industry of Pakistan Appendix B
34
12 Moderate
Involvement No
Involvement
moderate time
required
moderate time
required
moderate time
required
moderate time
required
moderate time required
moderate time
required
moderate time
required
moderate time
required
Substantial cost
Substantial cost
meagre cost
13 Moderate
Involvement Meagre
Involvement
moderate time
required
moderate time
required
moderate time
required
moderate time
required
moderate time required
minimum time
required
huge time required
huge time required
meagre cost
meagre cost Substantial
cost
14 Total
Involvement No
Involvement readily
available huge time required
readily available
moderate time
required
minimum time required
huge time required
huge time required
huge time required
Substantial cost
very cheap very costly
15 Moderate
Involvement No
Involvement
moderate time
required
moderate time
required
moderate time
required
moderate time
required
moderate time required
moderate time
required
moderate time
required
moderate time
required
meagre cost
very cheap very cheap
16 Not
Concerned Meagre
Involvement
moderate time
required
moderate time
required
moderate time
required
moderate time
required
moderate time required
moderate time
required
moderate time
required
moderate time
required
meagre cost
Substantial cost
Substantial cost
17 Moderate
Involvement Not
Concerned
moderate time
required
moderate time
required
moderate time
required
moderate time
required
minimum time requried
moderate time
required
huge time required
huge time required
Substantial cost
Substantial cost
Substantial cost
Archiving info_1
Interpretation contract_1
Architect response_1
Quantifying claim_1
Prepare claim_1
Lack resources
Showing Cause effect
Lack Contemporary
records Poor
records
Identifying Retrieving
info Architect response
Time limitation Others
1 Substantial
cost meagre cost very costly
Substantial cost
meagre cost
very much responsible
mere responsible
very much responsible
very much responsible
very much responsible
very much responsible
moderately responsible
Not responsible
2 Substantial
cost Substantial
cost Substantial
cost Substantial
cost very cheap
very much responsible
moderately responsible
moderately responsible
very much responsible
moderately responsible
very much responsible
very much responsible
moderately responsible
3 meagre
cost very costly
Substantial cost
Substantial cost
meagre cost
moderately responsible
very much responsible
moderately responsible
mere responsible
moderately responsible
very much responsible
moderately responsible
moderately responsible
4 meagre
cost meagre cost
meagre cost
Substantial cost
Substantial cost
mere responsible
very much responsible
moderately responsible
moderately responsible
moderately responsible
very much responsible
moderately responsible
moderately responsible
5 Substantial
cost meagre cost
meagre cost
Substantial cost
meagre cost
mere responsible
mere responsible
mere responsible
moderately responsible
moderately responsible
moderately responsible
mere responsible
mere responsible
6 Substantial
cost very cheap very costly
Substantial cost
meagre cost
moderately responsible
mere responsible
moderately responsible
very much responsible
very much responsible
very much responsible
moderately responsible
mere responsible
7 meagre
cost meagre cost very costly very costly
Substantial cost
moderately responsible
moderately responsible
very much responsible
very much responsible
moderately responsible
very much responsible
very much responsible
mere responsible
8 very costly meagre cost Substantial
cost Substantial
cost meagre
cost Not
responsible moderately responsible
moderately responsible
mere responsible
moderately responsible
very much responsible
mere responsible
mere responsible
9 Substantial
cost very cheap
meagre cost
meagre cost
meagre cost
very much responsible
moderately responsible
moderately responsible
moderately responsible
very much responsible
moderately responsible
moderately responsible
moderately responsible
10 meagre
cost meagre cost
Substantial cost
Substantial cost
Substantial cost
very much responsible
moderately responsible
moderately responsible
very much responsible
mere responsible
moderately responsible
very much responsible
mere responsible
11 Substantial
cost Substantial
cost Substantial
cost Substantial
cost Substantial
cost mere
responsible moderately responsible
mere responsible
Not responsible
moderately responsible
moderately responsible
mere responsible
moderately responsible
12 very costly Substantial
cost Substantial
cost meagre
cost very cheap
moderately responsible
very much responsible
mere responsible
very much responsible
moderately responsible
very much responsible
moderately responsible
Not responsible
Claims in the Construction Industry of Pakistan Appendix B
35
13 Substantial
cost very costly
meagre cost
very costly Substantial
cost very much
responsible moderately responsible
very much responsible
very much responsible
moderately responsible
moderately responsible
mere responsible
mere responsible
14 Substantial
cost very costly
meagre cost
Substantial cost
meagre cost
Not responsible
mere responsible
moderately responsible
very much responsible
mere responsible
moderately responsible
mere responsible
moderately responsible
15 very cheap meagre cost meagre
cost meagre
cost meagre
cost mere
responsible moderately responsible
moderately responsible
moderately responsible
moderately responsible
mere responsible
mere responsible
mere responsible
16 Substantial
cost meagre cost
Substantial cost
Substantial cost
Substantial cost
mere responsible
mere responsible
moderately responsible
moderately responsible
moderately responsible
moderately responsible
moderately responsible
mere responsible
17 Substantial
cost meagre cost
Substantial cost
meagre cost
very cheap mere
responsible moderately responsible
very much responsible
moderately responsible
moderately responsible
very much responsible
moderately responsible
Not responsible
Claims in the Construction Industry of Pakistan Appendix B
36
Respondent Data Analysis B.1 Records Keeping
Timely maintain
Frequency Percent Cumulative Percent
Never 2 11.8 11.8
Sometimes 6 35.3 47.1
Mostly 3 17.6 64.7
Always 6 35.3 100.0
Total 17 100.0
Timely maintain
Frequency Percent Cumulative Percent
Always Lost 2 11.8 11.8
Mostly Lost/faced difficulties
4 23.5 35.3
Never filled a claim 6 35.3 70.6
Few times lost/faced difficulties
5 29.4 100.0
Total 17 100
EDMS
Frequency Percent Cumulative Percent
Yes 3 17.6 17.6
No 14 82.4 100.0
Total 17 100.0
Claims in the Construction Industry of Pakistan Appendix B
37
B.2 Extent of use of project documentation
N Mean Importance Index Rank
BOQ 17 3.1176 0.779 4
Claim_Documentation 17 2.7647 0.691 10
Minutes_Site_Meeting 17 2.8824 0.721 10
Schedules 17 3.0000 0.750 7
Photographs 17 3.0588 0.765 6
Site_Diaries 17 2.7647 0.691 10
Contract_Conditions 17 3.4118 0.853 2
Correspondence 17 3.1176 0.779 4
Daily_diaries 17 2.6471 0.662 12
Delay_records 17 2.8824 0.721 8
Specification 17 3.1765 0.794 3
Revised_drawings 17 3.6471 0.912 1
B.3 Change Orders
Change Order Received
Frequency Percent Cumulative Percent
Never received 1 5.9 5.9
sometimes received 8 47.1 52.9
Most of the times received
4 23.5 76.5
All the times received
4 23.5 100.0
Total 17 100.0
Oral Change Order
Frequency Percent Cumulative Percent
sometimes received 6 35.3 35.3
Most of the times received 6 35.3 70.6
All the times received 5 29.4 100.0
Total 17 100.0
Claims in the Construction Industry of Pakistan Appendix B
38
OCO Defended
Frequency Percent Cumulative Percent
Never defended 5 29.4 29.4
Sometimes defended
10 58.8 88.2
Most of the times defended
2 11.8 100.0
Total 17 100.0
Waive Clause
Frequency Percent Cumulative
Percent
Yes 4 23.5 23.5
No 13 76.5 100.0
Total 17 100.0
B.4 Contract Knowledge
Studying Bidding Document
Frequency Percent Cumulative Percent
0%-30% 2 11.8 11.8
30%-50% 6 35.3 47.1
50%-80% 5 29.4 76.5
80%-100% 4 23.5 100.0
Total 17 100.0
Contract Clause Addition
Frequency Percent Cumulative Percent
Yes 11 64.7 64.7
NO 6 35.3 100.0
Total 17 100.0
Claims in the Construction Industry of Pakistan Appendix B
39
B.5 Claim Preparation individual involvement
N Mean Importance Index Rank
Project_Manager 17 3.3529 0.282 2
Project_QC 17 3.8824 0.211 5
Headoffice_QC 17 3.4706 0.236 3
Site_engineer 17 4.2353 0.166 7
Claim_Manager 17 3.5882 0.283 1
Claim_Consultants 17 3.8824 0.186 6
Others_involved 17 2.4706 0.236 3
Time Involved
N Mean Importance Index Rank
identify_info 17 2.8824 0.721 6
identify_sources 17 3.1176 0.779 3
retrieve_info 17 2.8235 0.706 7
archiving_info 17 2.1765 0.725 5
interpratation_contract 17 2.0588 0.686 8
architect_response 17 2.4118 0.804 2
Claim_quantifying 17 2.4706 0.824 1
prepare_claim 17 2.2353 0.745 4
Cost entailed
N Mean Importance Index Rank
identify_info 17 2.5882 0.647 5
identify_sources 17 2.4118 0.603 6
retrieve_info 17 2.7647 0.691 3
archiving_info 17 2.7647 0.691 3
interpratation_contract 17 2.4118 0.603 6
architect_response 17 2.8235 0.706 2
Claim_quantifying 17 2.8824 0.721 1
prepare_claim 17 2.1765 0.544 8
Claims in the Construction Industry of Pakistan Appendix B
40
Reason in Claim Delay
N Mean Importance Index Rank
lack_resources 17 2.7059 0.676 7
Showing_cause_effect 17 2.8824 0.721 5
Lack_contemporary_records 17 3.0588 0.765 3
Poor_records 17 3.2353 0.809 2
Identifying_retriving_info 17 3.0588 0.765 3
achitect_response 17 3.4706 0.868 1
time_limitation 17 2.8235 0.706 6
Others 17 2.1765 0.544 8
41
References
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