Applicability of Effective Claim Management Framework Under FIDIC 2017 Red Book in Sri Lankan Construction Industry

Abstract

An increase in claims is the outcome of the issues that the construction industry is currently facing. The present claim procedures' inherent inefficiencies frequently result in contractors receiving little or no payment for claims they file related to building projects. For their claims to be paid in full, contractors must ensure that they submit their claims precisely and accurately. In recent times, several researchers have made reducing construction claims their top priority. They have focused on specifically defining the expected causes of claims, and it has come across that delays in constructions are a major source for the increase in claims. This study examined the current Claim Management (CM) procedure in Sri Lanka, the problematic issues of the current procedure, the solutions for overcoming the issues, and the applicability of implementing a successful Claim Management Framework (CMF) for the Sri Lankan construction industry within the terms of the FIDIC 2017 Red Book. A framework was presented, and it may prevent disputes over construction claims. Expert interviews and document reviews were all used in this qualitative study. Content analysis using manual techniques were applied for the data analysis. The study presents a new format for presenting claims and identifies methods for

identifying claim situations. Insufficient understanding among site staff regarding claim procedures and a lack of a standardized procedure are major issues in the Sri Lankan construction industry. A standardized framework can improve claim preparation, reduce cost overrun and project delays, reduce misunderstandings, expedite documentation, and ensure fairness ultimately leading to project success.