Factors Influencing Claims Procedure under Unstable Financial Condition

EL-Hady, Nourhan Ibrahem; Mohamed, Shady Ahmed; ELDASH, KARIM

doi:10.21608/erjsh.2022.158148.1080

Factors Influencing Claims Procedure under Unstable Financial Condition

Document Type : Research articles

Authors

¹ Civil Engineering Department, Faculty of Engineering at Shoubra, Benha University

² Civil Department, Constriction Management, Faculty of shoubra, Benha University

³ Department of Civil Engineering, Faculty of Engineering at Misr University for Science and Technology

10.21608/erjsh.2022.158148.1080

Abstract

Recently, the economic system has faced a several unstable financial conditions (UFC) which affected the
construction industries. As a result of the instability, this led to an increase in the number of claims during
implementation. Therefore, the importance of studying the impact of (UFC) on management and settlement of
claims has appeared. Also, the enhancement of an effective claim management system is highly needed.
Therefore, this research attempts to qualitative and quantitative analysis of factors affecting the claim process.
Qualitative analysis was performed by identifying and ranking the key factors influencing the management of
claims for construction projects. Depending on the literature review and expert interview, 30 factors were
determined and categorized into four major categories:1) human framework 2) claim characteristics 3)
organizational issues ,and contractual issues. The questionnaire survey was conducted to get the opinion of 133
participants, including contract managers, claim experts, and project managers. The data was analyzed
statistically using (SPSS) software. Then, factors were ranked using the total importance index (T.R.I.I). Based
on the results, the routine of public authorities ranked first. Whereas less-experienced parties come in the sconed
of the overall rank. While the third factoris economic uncertainty and increasing inflation rates. Quantitative
analysis of the factors influencing claims was performed using the fuzzy model. Thus, the fuzzy model was
developed to estimate the percentage of affected cost increase resulting from the occurrence of critical factors.
The model conducted a case study to verify the validity of the model application. Depending on the study and
examination of the factors. This model attempts to provide a contract manager with a visually makes decisions by
estimating the impacted costs. Contribute to measuring the extent of (UFC)damage to the claims process. This
model is characterized by ease of application and addressing the ambiguity associated with the impact of factors
arising from financial conditions. It also removes ambiguity about the interrelationship of factors with each other.
Through this it is possible for the contract manager to develop an acceptable response strategy to enhance the
chance of successful claims settlement and reduce the potential for disputes by avoiding or minimizing the impact
of emerging factors

Keywords