In the world of contracts and project execution, situations can arise where promised commitments are not kept, or construction projects are delayed. In such cases, affected parties can act by filing claims. Managing these claims, known as Claim Management, plays a crucial role in ensuring a fair and transparent procurement process.
What is Claim Management?
Claim Management is a part of contract management. It includes the process of identifying, assessing, submitting, negotiating and resolving claims within projects and contracts. A claim is a formal statement in which a party claims financial adjustments, time extensions, or other forms of compensation. These claims can arise, for example, from delays, changes in scope, quality issues.
The role of a claims manager
A claims manager plays a central role in the process of Claim Management. This professional is not only responsible for coordinating and managing claims, but also plays a role in proactively identifying potential conflict situations and devising strategies to mitigate them.
In addition, the claims manager is tasked with preparing and submitting claims when contractual issues arise. This includes the process from collecting relevant documents and evidence, to drafting a clear and convincing claim. These claims are often supported by legal arguments highlighting the contractual terms and relevant laws and regulations.
The goal of the claims manager is to resolve disputes fairly and efficiently, while protecting the relationships and reputation of all parties involved.
The process of Claim Management
There are several stages within the process of Claim Management:
- Identification and documentation: In this phase, the claims manager identifies possible sources of claims and collects relevant facts and evidence. This can range from contract documents and schedules to correspondence and reports.
- Analysis: The claims manager analyses the information collected to assess the impact and scope of the claim. Costs and damages are quantified, and legal bases are established.
- Drafting the claim: The claims manager drafts a clear and detailed claim, supported by facts, evidence and legal arguments. Contractual terms and relevant laws and regulations are considered.
- Negotiation and resolution: The claim manager consults with the party or parties involved, explains the claim and negotiates possible solutions. The aim is to reach an acceptable and fair resolution.
- Arbitration or litigation (if necessary): If no agreement is reached, it may be necessary to take further steps, such as arbitration or launching a lawsuit.