Claims Management

Description

Claims management is a component of the Project Plan concerned with the prevention, mitigation and resolution of consultant and construction contract claims on real property projects. (Incidents Claims are dealt with in the document "Management and Mitigation of Damages from Incidents in Facilities Owned or Leased by Public Services and Procurement Canada".)

Objectives

to identify and manage risk exposures on projects
work within a 'team' environment
promote established departmental resolution processes
resolve claims promptly in a fair and reasonable manner, respecting the rights and obligations of both the contractor and Real Property Branch (RPB) to claims, counterclaims and assessments.

Real Property Context

Design and construction, by its very nature, involves risks and exposes RPB to certain non-transferable risks and/or liabilities, the major ones being health, safety and environmental.

Given the increasingly litigious atmosphere of the construction industry, claims are more prevalent, and RPB must place more emphasis on their prevention, mitigation and resolution. Although the use of standard consultant agreements and construction contract documents helps to mitigate the number of claims, each contract nevertheless exposes Real Property Branch (RPB) to potential disputes that may eventually result in formal claims.

Project managers (PM) are responsible for resolving disputes and claims that arise on their projects. However, due to the technical complexity of many claims, RPB has established:

the Claims Prevention and Management Unit in the National Capital Area which provides expertise in claims prevention and management, manages a claims avoidance training program.
a National Claims Prevention and Management Committee comprised of regional representatives to ensure development, consistent application and continual improvement of claims—related policies, procedures and lessons learned

These organizations provide coaching and support to PMs in the resolution of claims, however to be most effective, they must be involved at an early stage of a dispute.

Inquiries

To obtain further information, please contact the Claims Prevention and Management Unit at csiupgr.isccpmu@tpsgc-pwgsc.gc.ca.