Construction Claims Management in United Arab Emirates Construction Industry

The United Arab Emirates (UAE) have developed rapidly during the last two decades expanding in an astonishing and unbelievable manner. This development is seen through the increase of the production in construction industry over the years. One of the most negative constraint faced by the construction industry are the claims demanding either additional payment or/and time as a consequence or condition not stated in the contract. Construction contracts followed in the UAE are either Lump Sum or Unit Rate while Lump Sum Contracts are more dominant. The contract administration in the UAE is done by the same company that designed and made all required documentations of the construction in behalf of the owner. In this study the current claim management system followed in the UAE is examined and the nature of claims, type of claims, causes and effects of claims are analyzed in depth. This is done through an analysis of two projects constructed by the same company referred to as QWE Construction Company. The case study is carried out by conducting interviews that were questioning inquiries regarding claim management system, causes and effects, procedure of claim submission, initial steps for the claim resolution and resolution method or negotiation outcomes. Moreover a questionnaire was distributed to different firms and organizations in the construction industry regarding claim management, Fédération International Des Ingénieurs-Conseils (FIDIC) contracts, role of Engineers, and record keeping and documentation systems. Some of the findings indicate that there is a high dependency on a third party for claim formulation, the minimal interference of the Engineer for resolving the claim and the lack of record keeping and documentation. The study emphasizes on minimizing the loss of rights and elaborate on the other constraints that are faced in claim management.