Strategies for Managing Major and Preventable Causes of Claims and Variations.

# Avoidable Causes of Recommended Mitigation/Response Strategy

Variations and Claims
1 Changes by Client

• Develop a comprehensive and unambiguous project brief, ensuring all stakeholders ( ) agree on its content.
• Initiate early consultations with relevant authorities to anticipate and address their requirements.
• Allocate sufficient time for thorough project planning and preparation.
• Fully develop and coordinate the design, ensuring it is approved before implementation.
• Identify and allocate risks appropriately, utilizing criteria such as value-for-money assessments to evaluate and manage them
effectively.
• Implement robust change control procedures and minimize changes wherever possible to maintain project consistency.
2 Inappropriate Contractor
Selection
• Contractor selection ( )should be guided by a comprehensive set of criteria, encompassing both price-related and non-
price-related factors.
• Evaluate the contractor's financial stability, past performance, relevant experience, and availability of qualified personnel.

• Assess the contractor's current workload, experience with projects of similar scale, management resources ( ), formal
training programs, and track record.
• Review technical expertise, management capabilities, and health and safety performance.
• Consider the contractor's reputation, particularly with respect to claims, disputes, and overall reliability.
3 Inappropriate Contract • Feasibility Phase: Align strategic business objectives with initial project goals and justify the need for the facility.
Type/ Strategy • Concept Phase: Translate business objectives into the preliminary project scope and evaluate alternative strategies for project
delivery and contracting.
• Detailed Scope Phase: Define design decisions and finalize the project delivery and contracting strategy.
• Design Phase: Establish comprehensive project delivery and contracting plans, including control measures.
• Construction Phase: Detail construction methodologies, operational processes, contracting strategies, and procedural guidelines.
• Commissioning, Start-Up, and Operation Phase: Finalize commissioning activities, start-up plans, and update operational contracts
before handing over to operations.

Key Attributes of Optimal Contracts:

 • Ensure alignment of objectives between the owner and contractor.
• Select contractors that deliver value for money.
• Foster quality information exchange, trust, and effective relationship management.
• Promote long-term commitment with mechanisms for renegotiation as needed.

• Implement equitable risk-sharing arrangements.

• Optimize wage structures and incentive-based contracting mechanisms.

4 Inappropriate/ Unexpected • Develop Schedule Control Procedures and Systems: Implement robust systems to monitor and manage the project timeline
Time Control effectively.
• Set a Defined Time Boundary: Establish a fixed overall project duration, determined by specific constraints or the chosen contract
strategy, and use it as a key control parameter.
• Implement a Time Auditing System: Regularly track actual time spent on activities compared to the planned schedule to ensure
alignment.
• Address Time Overruns:

• Permit the resequencing of subsequent activities to regain schedule alignment.

• Expedite tasks by allocating additional resources (acknowledging potential cost increases due to crashing).
• Incorporate the time impacts of identified risks into the program and adjust accordingly.
• Evaluate and revise the contractor’s work program to address deviations and optimize timelines.

5 Inappropriate/ Unexpected • Ensure Efficient Strategy Planning and Project Supervision: Optimize site management and oversee project execution with a focus
Cost Control (Target) on efficiency.
• Maintain Organized Regulatory Mechanisms: Implement appropriate construction methods supported by effective organizational
strategies, including:

• Leveraging prior experience to guide decisions.

• Promoting regular coordination among all stakeholders.
• Expanding and developing human resources within the industry.
• Managing contracts effectively to ensure compliance and performance.
 • Holding regular progress meetings ( ) to review and address project developments.
• Engaging skilled subcontractors and suppliers, prioritizing capability and past performance over cost to enhance contract
quality and organizational procedures.

• Facilitate Effective Communication: Establish clear and reliable channels for information sharing and communication.
• Leverage Advanced Technology: Incorporate modern technologies as part of both proactive and reactive strategies.
• Undertake Preconstruction Planning: Conduct comprehensive planning to address project procedures, resources, and requirements
before construction begins.
6 Lack of Information for • Clearly Define and Assess the Issue: Determine whether the matter requires action and evaluate its urgency and importance to
Decision-Making; prioritize accordingly.
Decisiveness • Collect and Analyze Relevant Information: Gather all facts related to the issue and identify their underlying causes.
• Develop and Explore Potential Solutions: Brainstorm possible options and approaches to address the issue effectively.
• Evaluate Options Thoroughly: Weigh the advantages and disadvantages of each option, seeking input from others when beneficial.
For complex decisions with multiple options, utilize a structured template to assess choices against key strategic factors.
• Make a Decisive Choice: Select the most effective solution, avoiding vague compromises or decisions aimed solely at appeasing
all parties.
• Communicate and Implement the Decision: Clearly explain the rationale behind the decision to those impacted, and ensure proper
follow-up to guarantee its successful execution.
7 Inappropriate /Unexpected • Enhance Collaboration and Integration Across Project Knowledge Areas: Foster better coordination and alignment among different
Quality Control (Target project domains.
• Ensure Achievement of Project Objectives: Focus on meeting all defined goals and deliverables.
• Minimize Costs by Preventing Mistakes: Reduce unnecessary expenses by avoiding errors early in the process.
• Decrease the Need for Rework: Save time and resources by minimizing rework.
• Promote Better Working Conditions and Workforce Wellbeing: Contribute to a healthier and safer work environment.
• Facilitate Improved Communication Among Team Members: Strengthen communication through clearly defined processes and
channels.
• Deliver High-Quality Results: Ensure that high-quality standards become the baseline requirement for the company.
8 Slow Client Response • Implement Project Monitoring Systems: Develop effective mechanisms to track and assess project progress.

• Schedule Regular Meetings ( ): Organize consistent meetings to review project status and address any concerns.
• Request Support from Others and Experts: Seek help from colleagues and specialists to gather necessary information and
accelerate decision-making.
9 Inadequate/ Inaccurate • Planning: Clearly define roles, responsibilities, timelines, costs, and specifications for each task.
Design Information
 • Final Design Kick-Off Meeting: ( )Convene a meeting to review project requirements, schedule, and key decisions,
ensuring all stakeholders fully understand the issues highlighted in the approved preliminary design.
• Ensure Drawing Completeness: Verify that all drawings are comprehensive and accurately define the work required.
• Coordinate Drawings with Specifications: Ensure that all drawings align with the required specifications.
• Implement Design Adjustments: Incorporate any revisions based on the approved design drawings.
• Clarity of Drawings: Ensure that all drawings are clearly drafted for easy interpretation.
• Provide Composite Drawings: Include composite drawings for better clarity and understanding.
• Include Subsurface Information: Ensure that borings and other geotechnical data are reflected in the drawings.
• Use Proper Scales and Symbols: Apply graphic and alphanumeric scales to prevent confusion on reduced prints, and ensure proper
drafting scales are used, with clear symbols, legends, and abbreviations.
• Prepare Final Specifications: Finalize the specifications, including their format, coordination, revision, and commissioning details
for HVAC, plumbing, and electrical systems.
• Ensure Compliance with Design Requirements: Confirm that final design drawings and specifications meet all requirements,
including drawing format, necessary comments, regulatory agency approvals, and clarity and completeness of the specifications.
• Finalize the Cost Estimate: Ensure the accurate production and review of the final project cost estimate.
• Establish and Adhere to Final Design Procedures: Develop, review, and implement procedures for final design, including
submittals, reviews, utility and regulatory agency approvals, and addressing any questions.
• Prepare Contract Documents: Draft the bid form, general conditions, special conditions, and include any specific experience
requirements for contractors.
• Conduct Constructability Review: Perform a review to ensure contract documents, including technical specifications, are clear,
coordinated, and comprehensive.
• Review Design Documents: Perform a thorough review of plans, specifications, bid documents, and addendums to ensure
accuracy and completeness.
10 Inappropriate Contract ( • Contract Specifications: The contract should clearly outline:

• The scope of work, completion timeline, cost, and payment terms;

• The consequences in the event of a default by either party;
)Form
• The extent to which common law principles apply.

• Define the Construction Contract Parties:

• Employer: Requires the construction work and provides payment.

• Employer's Representative: Acts on behalf of the employer, potentially known as the engineer, project manager, principal-
agent, etc.
• Contractor: Commissioned to carry out the construction work.
 • Subcontractor: Appointed by the contractor to perform part of the work under a subcontract.
• Adjudicator/Arbitrator/Court: Resolves disputes between the parties.

• Select the Contract Form:

Custom-made Contract or Standard Form Contracts

• Determine the Contracting Approach:

Main contractor, joint venture partner, or subcontractor.

• Decide on the Construction Contract Arrangement:

Pure construction contract, design-build, or engineer-procure-construct (EPC).

• Clarify the Rights of Contract Parties:

Timely payments, extensions of time, site access, termination procedures, and appointment of subcontractors.

• Outline the Responsibilities of Contract Parties:

Completion of works, guarantees, insurance requirements, administrative procedures, and compliance with applicable laws.

Responding to communications, substantiating claims, and managing subcontracts.

• Balance the Risks for Contract Parties:

Errors in calculations, poor management, delays, penalties, and the insolvency of the employer.
11 Inappropriate Payment • Identify Stakeholders and Supply Chain: Define the key stakeholders and the supply chain involved in the project.
Method • Establish Project Schedule: Determine the project program, outlining key timelines and milestones.
• Define Responsibility Assignment Matrix: Develop a project process mapping responsibility assignment matrix to clarify roles and
responsibilities.
• Clarify Required Products and Services: Identify the necessary products, services, management, design, engineering, prefab, and
assembly requirements for the project.
• Approve a Common Project Management Framework: Approve a unified framework to manage and control the project, ensuring it
aligns with the client’s business objectives.
 • Continuously Refine and Improve Processes: Regularly enhance the framework for project management and control to ensure
optimal performance.
• Detail Required Actions in the Framework: Outline all actions that must be taken within the common framework based on the
process map.
• Analyze the Payment Requirements: Use the detailed process map to simulate payment schedules during the design and
construction phases, and evaluate the impact of alternative payment methods on cash flow for stakeholders and supply chain
members.
• Acknowledge Stakeholder and Supply Chain Importance: Recognize the growing role of stakeholders and supply chains as
performance drivers within the construction industry.
• Plan Cash Flow Lifecycle Post-Payment Mechanism Definition: Once the payment mechanism is established, begin planning the
cash flow throughout the project lifecycle.
• Compare Payment Mechanisms: Evaluate the chosen payment mechanism against preferable options ( Contract Type), such as:

• Reimbursable cost-plus percentage fee

• Reimbursable cost-plus fixed fee
• Target cost (shared overrun/underrun)
• Unit-rate (including re-measure)
• Guaranteed maximum price
• Lump-sum with reimbursable construction
• Lump-sum (wholly lump-sum)
• Open-book accounting
• Stage payments
• Incentive contracting
• Direct payment
• Trust accounts/funds
• Mobilization advance payment

12 Inadequate Site • Establish Building Design Concept and Terms of Reference: Define the overall building design concept and set the terms of
Investigations reference for the project.
• Provide Preliminary Site Characterization: Offer an initial site assessment and description of key site characteristics.
• Conduct Test Holes and Sampling: Specify the number and depth of test holes, along with stratigraphic descriptions and sampling
methods.
• Perform Laboratory Testing and Soil Classification: Conduct laboratory tests, classify soils, take photographs, and measure ground
temperatures.
• Prepare the Report, Including:

• A restatement of the project definition.

 • A characterization of the site, identifying surrounding conditions that could affect the design and performance of the
building foundation.
• A statement on the current and projected end-of-service life, climate, and ground temperatures of the building.
• Soil classification according to ASTM standards, supported by quantitative laboratory results.

• Identify Appropriate Foundation Options: Recommend suitable foundation types based on the building’s expected service life.
• Provide Guidance on Construction Scheduling: Offer guidance for scheduling the foundation work, including a peer review of the
proposed plan.
13 Unclear and Inadequate • Understand Various Types of Specifications: Be familiar with different specification types, including output-based, performance-
Specifications based, and prescriptive-based specifications.
• Develop Project Specifications: Create specifications that align with the user’s requirements, quality standards, performance
characteristics, and technical details.
• Implement Value Management: Incorporate value management techniques to optimize project outcomes.
• Structure Specifications Effectively: Ensure the project specifications are well-organized and logically structured.
• Evaluate Whole-Life Cost Implications: Assess the long-term cost implications of the specifications throughout the project's
lifecycle.
• Obtain Final Approval: Secure final approval for the specifications.
• Ensure Coordination with Other Contract Documents: Ensure that the specifications are properly coordinated with all other
contract documents.
14 Inadequate Design • Establish a Clear Client Brief: Develop a detailed client brief that includes key drivers and parameters such as budget, function,
Documentation quality, sustainability, urban considerations, and commercial returns.
• Clear Client Requirements for Better Consultant Response: A well-articulated brief by the client leads to a more effective response
from consultants.
• Include Document Checking and Coordination Requirements: The client brief should outline any specific requirements for
document review and coordination.
• Client Engagement with Specialists for Complex Projects: For complex projects, clients may need additional support in brief
preparation, budgeting, and scheduling, and may engage specialists like facilities planners or independent cost advisors, who may
not be part of the project team.
• Clarify Consultant Expectations in the Proposal Request: Explicitly state the client’s expectations of the consultant in the request
for proposal (RFP), including selection criteria.
• Clearly Define Contract Conditions and Consultant Obligations: Clearly outline the contract conditions and the consultant’s
obligations, such as quality control and assurances.
• Consultant Selection Based on Expertise and Financial Offerings: Consultant selection should consider technical expertise, past
experience, and financial proposals.
• Client’s Requirement for Quality Control in Consultants: Clients may require consultants to demonstrate robust quality control
systems.
• Consultants to Articulate Project Methodologies: Consultants should outline their project methodologies, including design
approaches and quality control measures, in response to RFPs.
• Select Secondary Consultants Based on Value for Money: Primary consultants should choose secondary consultants based on value
for money, justifying their selection in the proposal.
• Team Formation and Integration: At the start of the project, the client and project team should ensure that all roles, responsibilities,
and obligations are well understood by all parties.
• Agree on Design and Documentation Review Process: Establish and agree on a process for design and documentation review,
including review points and milestone sign-offs by the client and project team.
• Develop a Quality Plan: Create a quality plan that includes procedures for communication, document control, and coordination.
• Consultant Reporting on Risk Management: Clients may require consultants to report on potential risks and provide options for
managing them.
• Obtain Approvals and Progress Sign-Offs: Secure approvals and sign-offs progressively throughout the project.
• Encourage the Use of Project Management Tools: Promote the use of tools, such as value management, to assist in project
execution.
• Promote Integrated Teams and Problem Resolution Procedures: Encourage the formation of integrated teams and establish clear
procedures for addressing problems.
• Incorporate Construction Expertise Early in the Process: Encourage design and documentation teams to involve construction
expertise early, such as using contractors for buildability decisions.
• Implement Quality Management Across All Phases: Quality management should encompass project implementation, design, and
documentation.
• Consider Total Project Cost in Design and Documentation: Actively consider the project’s total life-cycle cost during the design
and documentation process.
• Develop Quality Management Tools: Create a range of quality management tools, including checklists, review procedures, and
audits.
• Consider Independent Reviewers or Value Management: The client and project team should consider the role of independent
reviewers or value management teams.
• Consultant’s Advice on Documentation Quality: Consultants should provide advice on the expected quality of documentation,
based on the allocated resources and timeline.
• Consultants to Ensure Compliance with Quality Plan: Consultants should guarantee that their design and documentation align with
the established quality plan.
• Use Technology for Documentation Control and Coordination: Consultants should utilize technology for effective documentation
control and coordination.
• Appoint a Documentation Coordinator: The project team should nominate an experienced individual to be responsible for
coordinating documentation.
• Obtain Segmental Approvals and Sign-Offs: Ensure approvals and sign-offs for various segments throughout the project.
• Advise Clients on Brief Adequacy and Associated Risks: Consultants should advise the client on the adequacy of the brief and any
risks arising from insufficient documentation allowances in the budget or schedule.
• Coordinate Secondary Consultants and Documentation Sign-Offs: Coordinate with secondary consultants to ensure they sign off
on their documentation completeness, and provide overall sign-off to the client, confirming the project documentation is
comprehensive.
 • Ensure Version Control for Secondary Consultants: Implement version control procedures for documentation from secondary
consultants.
• Create Coordination Roles for Design and Documentation: Establish specific roles within the project team to manage design and
documentation coordination.
15 Inadequate Contract • Clearly Define Contract Documentation: Ensure that the contract documentation is well-defined and comprehensive.
Documentation • Ensure Clear Understanding of Project Scope: Make sure the contract clearly communicates the scope of the project.
• Define Responsibilities, Authorities, Roles, and Communication: Precisely outline the responsibilities, authorities, roles, and
communication lines for all parties involved in the contract.
• Monitor Progress According to Established Criteria: Track progress in accordance with predefined monitoring procedures.
• Ensure Accuracy and Adequacy of Design Information: Verify that the design information is both adequate and accurate.
• Ensure Consistency and Accuracy of Tender Information: Confirm that the tender information is accurate, consistent, and
comprehensive.
• Conduct a Constructability Review: Perform a review to assess the constructability of the project.
• Review Contract Documentation for Clarity: Examine contract documentation for any inconsistencies or ambiguities before it is
issued for tender.
• Correct Ambiguities During Tender Stage: Address any ambiguities or inconsistencies discovered during the tender process by
issuing addenda.
• Use Precise Language for Key Terms: Use clear and precise language when defining critical terms such as “Works” and
“Approved.”
• Carefully Draft the Definitions Section: Ensure that the definitions section of the contract is thoroughly and carefully drafted.
• Complete Final Contract Documentation: Ensure the completion of all final contract documentation before execution.
16 Inadequate Contract • Project Management Discipline: All work should be properly led, planned, scheduled, coordinated, communicated, tracked,
Administration evaluated, reported, and adjusted as necessary.
• Contract Analysis and Planning: Prior to contract award, each party should create a contract administration plan and designate a
contract manager to oversee its execution.

• Kick-off Meeting ( ) or Pre-performance Conference: A meeting should be held before performance commences to
ensure alignment among all parties.

• Performance Measurement and Reporting: ( During contract execution, the project manager, contract manager, and
relevant business managers should monitor performance, collect data, and assess actual progress.
• Payment Process: A clear invoicing and payment process must be established for every contract.
• Contract Change Management Process: Any party authorized to enter into a contract may agree to modifications. Changes are
typically inevitable in contracts for complex projects.
• Dispute Resolution Process: A process for resolving disputes should be outlined in the contract.
 • Contract Closeout Process: Contract closeout involves confirming that all administrative tasks have been completed for a
contract that is otherwise physically finished.

17 Incomplete Tender • Conduct a Thorough Review of Tender Documents: Carefully review and audit all tender documents before issuing them to avoid
Information any ambiguities or discrepancies.
• Ensure Clarity, Consistency, and Completeness: Confirm that all tender documents are clear, consistent, and complete.
• Provide Adequate Information for Solicitation: Include all necessary details for the solicitation, such as the project brief, location
for collecting and reviewing bids, bid security requirements, and the bid submission deadline, time, and place.
• Ensure Sufficient Instructions and Information for Bidders: Provide comprehensive instructions, including the type of bid, bid
preparation guidelines, bid bonds and security, permits, and bid opening details.
• Organize a Pre-tender Site Visit for Bidders: Arrange a site visit for potential bidders before they submit their proposals.
• Ensure Clear Bid Response Forms: Ensure that bid response forms include essential information, such as project identification,
recipient of the bid, the bidder’s details, bid validity, pricing, and start and completion dates.
• Provide Complete Documentation: Supply bidders with specifications, drawings, contract forms, general and specific conditions,
and a bill of quantities.
• Establish Award Criteria and Bid Requirements: Clearly define the award criteria and essential requirements for a complete bid.
• Clarify Concerns in the Tender Document: Identify and address any areas of concern within the tender documents.
• Distribute Clarified Information to All Bidders: Send any clarified questions and answers to all bidders in writing.
• Avoid Unofficial Communication with Bidders: Ensure that all communication with bidders is formal and in writing.
• Issue a Written Award Notice: Provide a written notice of the award after evaluating the bids.
• Maintain Accurate Records: Keep detailed records of the tender process in case they are required later.
(Abdelalim et al., 2024)