In the world of large-scale construction projects, particularly turnkey ventures, contractor claims can significantly impact timelines, budgets, and stakeholder relationships. A recent study published in the journal ‘مهندسی و مدیریت ساخت’ (translated to English as ‘Engineering and Construction Management’) sheds light on this complex issue, offering a novel approach to understanding and managing contractor claims in turnkey projects according to the Fédération Internationale Des Ingénieurs-Conseils (FIDIC) standards. The research, led by Amir Momeni, a Master of Project & Construction Management at Islamic Azad University in Ardestan, Iran, employs system dynamics to model and analyze contractor claims, providing valuable insights for the construction industry.
Momeni’s study focuses on the 7008 housing units building project in Ojeda, Venezuela, serving as a case study to evaluate the effectiveness of system dynamics in modeling contractor claims. By combining library studies, surveys among experienced specialists in international civil projects, and system dynamics modeling, Momeni and his team identified the most critical variables and parameters affecting contractor claims in turnkey projects.
The results reveal that financial claims constitute 75% of all claims, with delays in employer payments accounting for about 60% and project changes making up nearly 20%. These factors are further influenced by strategies and management procedures, and their intensity can escalate in force majeure situations and unexpected events. Momeni emphasizes, “The lack of a project management system, risk allocation, and the absence of ownership flotation on the project schedule can significantly disturb the process of managing contractor claims in turnkey projects according to FIDIC.”
The study’s findings have substantial commercial implications, particularly for the energy sector, where turnkey projects are prevalent. Effective claim management can lead to more predictable project outcomes, reduced disputes, and improved stakeholder relationships. As Momeni notes, “Understanding the dynamics of contractor claims enables project managers to proactively address potential issues, minimizing delays and cost overruns.”
The application of system dynamics in modeling contractor claims represents a significant advancement in the field. This method allows for both qualitative and quantitative analysis, providing a comprehensive understanding of the factors at play. Momeni’s research suggests that this approach can be a valuable tool for project managers, helping them to navigate the complexities of turnkey projects more effectively.
As the construction industry continues to evolve, the insights gained from this study can shape future developments in claim management. By adopting a more systematic and dynamic approach, project managers can better anticipate and address the challenges posed by contractor claims, ultimately leading to more successful project outcomes. The research published in ‘مهندسی و مدیریت ساخت’ serves as a testament to the power of innovative methodologies in driving progress within the construction industry.