Project Management Techniques for Claims Prevention and Resolution

Prevention

Provide contractors with quality plans/specifications, definitive roles and responsibilities, adequate subsoil data and limit the number of change orders. Carry out PM responsibilities under the contract competently, promptly and judiciously
Minimize risk by ensuring adequate pre-planning, including clearly defined client needs
Be pro-active in dealing with dispute situations arising during the course of the project that could lead to claims (schedule slippages, excessive changes, misunderstandings etc.)
Identify and manage risk exposures early and at key stages in the delivery of the project (with input from the project team)
Utilize existing industry standards, experience, trends, and 'lessons learned'
Build preventative measures within contracts to minimize potential sources of claims by ensuring appropriate site selection, and by hiring competent consultants
Ensure there is a contractual basis for each claim
Do not transfer all the risk to the contractors and consultants
Maintain close progress monitoring and be aware of any slippages in schedule
Ensure prompt enforcement of contract clauses when delays occur
Resolve conflicts and impasses promptly as they occur, do not let situations "fester"
Ensure good working relationships with contractors and communicate frequently
Promulgate claims related 'lessons learned' within RPB, (on a national basis), through the office of the Claims Prevention and Management Unit

Analyze/evaluate claims in a surprise-free, 'team' environment approach by utilizing a claims resolution team
Consider each claim as being distinct, with its own costs or credits based on 'reasonableness' of arguments/costs presented by the contractor^{Footnote 1}
Resolve claims promptly by being fair, open and transparent
Ensure that disputes do not degenerate into 'personality' conflicts
Ensure that adequate project records and photographs are retained for future reference
Ensure that senior management and all members of the claims resolution team are advised of the claims status, particularly the client
Start by communicating with each other - direct negotiation
Use alternate resolution techniques: third party neutral, assisted negotiation, mediation
Ensure the rights and obligations of the contractor are properly considered
Ensure the rights of PSPC are exercised in regards to counterclaims and assessments