Contractor Claims Governance: Defending Against Cost Overruns and Schedule Creep

Managing contractor relationships in international industrial projects requires balancing commercial firmness with clear procedural protocols to neutralize opportunistic claims and schedule extension requests.

1. Standardized Claim Defense Protocol (5W1H)

When claims for additional costs, site alignment mismatches, or delay damages arise, evaluation must adhere to a quantitative factual audit:

Audit VectorVerification RequirementGovernance Standard
Contractual BaselineClause reference & notice timing complianceStrict compliance with 14-day notice windows
Causation ProofDirect evidence attributing delay to OwnerExclusion of concurrent contractor delays
Critical Path ImpactTime Impact Analysis (TIA) on Primavera/MS ProjectZero claim acceptance on non-critical activities
Cost SubstantiationAudited timesheets, material invoices & rate sheetsRejection of lump-sum or estimated overheads

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