in the Construction Industry
FEATURED PAPER
By Tobechi B. Ejekwu, PhD, Olabisi O. Ajiferuke, Kubiat-Sifon Thompson and Hammed Lawal
Department of Quantity Surveying
Niger Delta University
Wilberforce Island, Bayelsa, Nigeria
Abstract
Nowadays, the substantially increasing volume of claims is the result of the rising complexity of the projects, the price structure of the construction industry and the legal approach taken by a lot of owners and contractors. The study identified strategies for minimizing contract claims in the construction industry and ranked the strategies according to level of importance. The target population comprised all construction professionals in the selected construction contracting and consulting firms. The study applied a descriptive research design and a purposive sampling technique to select a sample size of 200 respondents of which 178 finally formed the study respondents used for analysis. The gathered data was analyzed using the Statistical Package for Social Science (SPSS) version 21; Inferential statistics using multiple regression analysis was applied to determine the relationship between the research variables. From the data analysis, the result clearly revealed that all the seven (7) factors/strategies identified are relevant strategies for minimizing contractors claims in the construction industry in Nigeria. Furthermore, the study showed that the contractors claims that often lead to dispute during execution of construction projects are grouped into change order claim, variation order claim, cost and expense claims and dayworks claim, but specifically are construction defect claims, breach of contract claims, construction delay claims, scope-of-work claims, failure to disclose claims, change in site conditions claims and sub-contractors claims. The study recommends that building clients should evaluate the quality performance, technical and financial performance of contractors using the factors highlighted in this study as a benchmark.
Keywords: Contractors Claims, Construction Industry, Strategies, Minimizing, Building Projects
1.0 Introduction
Background to the Study
Construction projects are intrinsically complicated, hazardous and at the mercy of the unpredictable weather and also the most complicated of human enterprises. Hence, it is perhaps not surprising that something often goes wrong (Shebob, Dawood & Xu, 2011). For this reason, no construction project is free from problems such as delay, unexpected additional or extra work, defective work, cost overruns, structural failure and accidents. Inevitably so, too, do disputes. Generally, they do occur due to the failure of one or more project participants to fulfill their contractual obligations which impact negatively on construction projects, thereby resulting to construction claims.
Construction claims are found in almost every construction project. It is the seeking of consideration or change by one of the parties involved in the construction process. Nowadays, the substantially increasing volume of claims are the result of the rising complexity of the projects, the price structure of the construction industry and the legal approach taken by a lot of owners and contractors (Levin, 2008). There are several researches that show the order of magnitude of the effects from construction claims on cost and time of the projects. Semple et al. (2014) presented the results of their survey of the claims in 24 construction projects in Western Canada. It was found that the large majority of claims involved some delays and in a number of cases delays exceeded the original contract duration by over 100%. As to the project cost, more than half of the claims were the additional costs of at least 30% of the original contract values. Callahan (1998) reported that transit agencies in the United States and Canada experienced an average cost growth of 7% of contract value from settlement of disputes and claims for heavy civil contracts. In Thailand, Khanchitvorakul (2010) surveyed the claim behavior of 21 the construction companies and discovered that the average cost growth from contract value causing by claims was approximately 7%, proximate to Callahan’s finding.
Although construction claims have significant effects on the projects, they are not always given adequate considerations. This research is aimed at presenting the key concepts of construction claims, and construction claim management, focusing on the contractors’ side. In addition, a questionnaires survey was performed to assess the efficiency of the contractors in managing their claims.
Statement of the Problem
Construction projects are complex and for this reason disputes are always present. For a lot of reasons, construction disputes have become increasingly common in the construction industry in Nigeria (Mbachu, 2008). Resolution of these disputes, which vary in their nature, size and complexity in recent years, have become very expensive in terms of finances, personnel, time and projects delays (Kululanga, Kuotcha, McCaffer & Edum-Fotwe, 2001). When construction disputes affect deadlines, productivity and costs, they must be dealt with promptly to keep the project on schedule and the budget on target (Brennan, 2006). As a result of this, there is a need to develop strategies to prevent the risk of disputes from occurring in the first place and also to help avoid the unnecessary escalation of disagreements into contested disputes which might otherwise need to be resolved through a formal or informal dispute resolution in Nigeria. Disputes are not something which arise of their own accord and thus simply appear one day and are, of course, nobody’s fault (Shoylekov, 2003). They do occur due to so many reasons and also the fact that the industry is an organization which deals with the organization of human resources, materials and procedures, with each project having numerous participants with different interests and approaches to the project. Locally among others, construction disputes have arisen due to the fact that standard documents are used without properly assessing them very thoroughly.
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How to cite this paper: Ejekwu, T. B., Ajiferuke, O. O., Thompson, K-S., Lawal, H. (2025). Identification of Strategies for Minimizing Contractors Claims in the Construction Industry; PM World Journal, Vol. XIV, Issue I, January. Available online at https://pmworldlibrary.net/wp-content/uploads/2025/01/pmwj148-Jan2025-Ejekwu-et-al-strategies-for-minimizing-claims-in-construction-industry.pdf
About the Authors
Tobechi B. Ejekwu, PhD
Bayelsa, Nigeria
Tobechi B. Ejekwu is a member of the Nigerian institute of Quantity Surveyors and also licensed by Quantity Surveyor’s registration board of Nigeria. He obtained his BSc, MSc, and Ph.D degrees in Quantity Surveying from Imo State University Owerri, Imo State, Nigeria . His Quantity Surveying professional experience of over ten years spans through his employment with construction firms as well as several years of teaching in the University. His research interest include but not limited to ICT, Sustainability and Life Cycle Costing in construction, with over fifteen articles published on both journals and conference proceedings. He is currently a Lecturer in the Department of Quantity Surveying, Niger Delta University Wilberforce Island Bayelsa, Nigeria. He is an experienced Quantity Surveyor with industry footprint in many high profiled projects. Ejekwu Tobechi can be contacted at tobejekwu@gmail.com.
Olabisi O. Ajiferuke
Bayelsa, Nigeria
QS Olabisi O. Ajiferuke obtained her Bachelor of Technology (B.Tech.) degree, and Master of Technology (M.Tech) in Quantity Surveying Practices in 2008 and 2016 respectively from the Federal University of Technology Akure (FUTA). She commenced her teaching career in the Department of Quantity Surveying, Osun State College of Technology, Esa-Oke as a Lecturer III in 2019. In 2020, She was employed as an academic staff in the Department of Quantity Surveying, Niger Delta University, and was appointed Coordinator, Quantity Surveying Department in 2021. She is currently a lecturer I at the department. Qs. Olabisi O. AJIFERUKE is a member of the Nigerian Institute of Quantity Surveyors (MNIQS), a Registered Quantity Surveyor (RQS), and Member of the Nigerian Institute of Management (MNIM). Her research interest areas are; Quantity Surveying Practices, Project Management, Sustainable construction, Digitalization in construction, Resilient infrastructure, construction emotional intelligence, and procurement. tel: 08038515081 email: angelbeecie2003@yahoo.com.
Kubiat-sifon U. Thompson
Bayelsa, Nigeria
QS Kubiat-sifon U. Thompson obtained his Bachelor of Science (B.Sc) Degree, in Quantity Surveying from the University of Uyo (Uniuyo) in 2007. He further obtained Master of Science Degree in Construction Management from the University of Uyo (Uniuyo) in 2017. He commenced his professional career as a Consultant QS with Nuks Associates, Port Harcourt, River state where he contributed towards the delivery of Millennium Development Goals (MDG) Projects in Bayelsa State. In 2011, he Joined Paul-B Nig Ltd, Abuja as a Contractor QS where he contributed professionally to the delivery of various Public and Residential Buildings in Uyo, Nsukka and Abuja. In 2023, he was employed as an academic staff in the Department of Quantity Surveying, Niger Delta University, Bayelsa state, and was appointed at the department as the Students’ Industrial Work Experience Scheme (SIWES) Coordinator. QS Kubiat-sifon U. Thompson is a member of the Nigerian Institute of Quantity Surveyors (MNIQS), a Registered Quantity Surveyor (RQS), and Member of the Nigerian Institute of Management (MNIM). He is also a Microsoft Certified System Professional (MCP). His research interest areas are; Quantity Surveying Professional Practices, Project Management, Construction Management, and Sustainable Public Procurement. Tel: 0806-737-3623 email: kuddy208@gmail.com
Hammed B. Lawal
Bayelsa, Nigeria
QS Hammed B. Lawal obtained his National Diploma (ND) in Quantity Surveying from Federal Polytechnic Offa, Kwara State in 2009 and Bachelor of Technology (B.Tech) in Quantity Surveying from the Federal University of Technology Akure (FUTA) in 2014. He further obtained Master of Technology (M.Tech) in Quantity Surveying (Cost Management Option) from the Federal University of Technology Akure (FUTA) in 2021.He is currently pursuing his doctoral programme in Obafemi Awolowo University, Ile Ife, Osun state. In 2016, he commenced his professional career as a Consultant QS with U-Nuel Partnership, Benin City, Edo state where he contributed professionally to the delivery of various Public and Residential Buildings in Asaba, Benin and Lagos. In 2019-2023, he was employed as an academic staff in the Department of Quantity Surveying, Osun state College of Technology (OSCOTECH) where he served as a final year project coordinator. In 2023, He was later employed as an academic staff in the Department of Quantity Surveying, Niger Delta University (NDU) and was appointed at the department as the departmental Examination Officer and Welfare Officer.
QS Hammed B. Lawal is a member of the Nigerian Institute of Quantity Surveyors (MNIQS) and an aspiring member of Registered Quantity Surveyor (RQS). His research interest areas are; Construction Economics, Quantity Surveying Professional Ethics and Practices, Contract Administration and Sustainable Public E-Procurement Technology. Tel: 08162870047 email: lawalhbolaji68@gmail.com
