A process reference model for claims management in construction supply chains: the contractors' perspective

Claims are an unavoidable burden for every construction project. They stem from risks that have unfortunately been realized in a project and how they will be pursued is up to company strategy, operational particularities and managers' skills and experience. Claims, in general, have an adverse effect on a project's supply chain by compromising actors' relationships, project implementation and project outcomes. It is imperative that all contractors follow a well-designed claims management strategy that is guided by well-defined and accurately documented operational processes outlined in detail. Process models related to claims management are scarcely found in the literature. These models are evaluated and a new process reference model, that attempts to improve the claims management process and rectify the identified shortcomings of existing models, such as a lack of transactions between the contractor and other supply chain actors, is proposed. In doing so, a number of process models are created. The objective of this paper is to prescribe the claims management process as an integral process to the supply chain of a construction project in an effort to raise awareness of this relationship and provide a holistic view to claims management through a supply chain management lens.