Construction claims, their types and causes in the private construction industry in the Kingdom of Bahrain
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ORIGINAL PAPER
Construction claims, their types and causes in the private construction industry in the Kingdom of Bahrain Yusuf M. Al Malki1 · Md Shah Alam1 Received: 10 May 2020 / Accepted: 5 November 2020 © Springer Nature Switzerland AG 2020
Abstract Claims are one of the tribulations that any construction project could face. This may cause work suspension, extension of time and payment delay. Therefore, understanding the main cause of claim can help to avoid them. The purpose of this research is to quantitatively identify the causes and types of construction claims and highlight them with the most significant influence on project performance in Kingdom of Bahrain. A questionnaire survey on the causes and types of claims was conducted on 80 participants from contractors, consultants, owners, and engineering experts working in different positions in the construction industry in Kingdom of Bahrain. Total 61 responses were obtained and analyzed using the statistical package software for social science (SPSS) version 20. From the analysis, top five reasons have been identified behind the reasons of construction claims. These are: change or variation orders; delay in payments to contractors and resulting cash problems during construction; insufficient time for bid preparation and inadequate investigation before bidding; delay approval of shop drawings, instructions and decision-making; and estimating errors. Keywords Types of claims · Causes of claims · Construction industry · Bahrain
Introduction Construction industry nowadays is experiencing a real evolution, making it the highlight of this decade. The Kingdom of Bahrain, is one of the countries that are witnessing this boom in the construction arena. According to the Bahrain Economic Development Board (2014) “The constructions sector in Bahrain currently contributes 5% to the local gross domestic product (GDP), and is expected to increase 3–5% annually. The growth is mainly attributed to the prioritization of infrastructure and housing projects in the Kingdom”. With the increase of the construction projects over the last decade, the number of related contracts has increased significantly. As a consequence, construction contracts form an essential part of the development and economy of many countries and Bahrain is no exception (Al-Khalifa 2014). Taking into account, the massive size of the projects, it’s expected that the number of construction claims will continue to rise. Construction claims are counted by many * Yusuf M. Al Malki [email protected] 1
Department of Civil Engineering, University of Bahrain, P. O. Box 32038, Zallaq, Kingdom of Bahrain
project contributors to be one of the most troublesome and displeasing events of a project. Vidogah and Ndekugri (1997, 1998) observed that construction claims are becoming a way of life and indeed an indispensable part of modern contract systems. These can be classified in different groups; such as: contractual claims, common law claims, quantum merit claims and ex gratia claims (Chappell et al. 2005) and
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