Proactive Management of Construction Claims

Proactive Management of Construction Claims: A Case in Support of the Construction Extension Guide to PMBOK®

BY:

Kgabo Maitisa - 1213876

Course: Project Management (BUQS 7009)

Supervisor: Dr Oluwayomi Babatunde

A Research Report Submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Science in Project Management in Construction.

SUBMISSION DATE: September 2017

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DECLARATION

I declare that this research report is my own unaided work. It is being submitted for the Degree of Master of Science to the University of the Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination to any other University.

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(Signature of Candidate)

September, 2017

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DEDICATION

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ACKNOWLEDGEMENTS

I wish to sincerely thank and acknowledge the contributions of the following persons to this research:

1. My brilliant supervisor, Dr Oluwayomi Babatunde, for your intellectual and progressive debates and for your generous assistance on this research, you have provided me with a fantastic opportunity to express myself.

1. All the participants who allocated their valuable time to contributing to this research. If I don’t mention your names individually it does not mean your contribution is insignificant.

1. My current and previous managers for their understanding when I use/d work time sometimes and for their overall support.

1. Willie Du Plessis and Jefrey Phahlamohlaka, you have been so amazing. Your support and encouragement kept me going.

1. Basi and Faith Maitisa, my parents, for the faith in your children, you provided us educational platform even when times were tough and your love and support is amazing

1. My children, Mosa and Mogau for their unconditional love and understanding throughout this process. I owe you my time.

1. Last but not least, my fantastic wife and best friend Dr Norah Maitisa, for your camaraderie, sacrifice and support you always give me.

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ABSTRACT

Problem Statement

As a background, several studies on construction claims management in the construction industry conducted in recent times highlighted deficiencies in current construction claims management approaches. Most of the research suggests a need for improvement in the efficiency of construction claims management processes. Claims management is an integral part of the entire project management and should be considered inherent in the administrative process of any construction project. Currently, the practice in construction claims management and dispute resolution generally reflects a one size fits all approach. Claims can be planned at tender stage.

Hence, the problem statement is that the lack of efficient construction claims management processes poses risks on a construction project which produces the need to manage it proactively and efficiently.

Aim

The aim of this study was to investigate whether construction administrators such as Project Managers, Contract Managers, Construction Managers and Construction Claims Consultants involved in construction claims management process are aware of the Construction Extension Guide to PMBOK® which presented a proactive administration of construction claims.

Research Methodology

The research approach used in this study was a cross-sectional survey using a structured questionnaire. A combination of both online questionnaire and face to face interviews were conducted. The targeted population consisted of professionals with experience in construction claims management and project management. Out of 84 questionnaires sent out, 42 were returned which amounted to 50% response rate. The 42 respondents comprised of 11 project managers, 2 construction managers, 6

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contract managers, 5 construction claims consultants, and 17 others who have not specified their roles.

The research, being a cross-sectional study was carried out only once. Questionnaires were sent out and received within a two-month period and the interviews were conducted in two weeks thereafter. Quantitative data were collected from 42 respondents and from the 42 quantitative data respondents, 9 respondents were interviewed face to face for collecting qualitative data. Quantitative research uses mainly deductive reasoning while qualitative research uses mainly inductive reasoning. This research used both the deductive and inductive reasoning in analysing data. The research used descriptive method of analysis. The descriptive method is a straightforward calculation that shows how the respondents are distributed on all the items of the investigation.

Research Findings

The research findings indicated that project managers, contract managers, construction managers and construction claims consultants, even though they may be aware of the construction extension guide to the PBMOK, rarely make reference to it as a proactive project management tool for construction claims. In addition, the result pointed out that the Construction Extension Guide to the PMBOK® is an important tool in the management of construction claims.

KEY WORDS

Construction Claims, Construction Claims Management, Claims, Project Management, Proactive Project Manager, Construction Extension Guide to PMBOK®