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(CDR-3254) Claims Avoidance in Infrastructure Megaprojects: A Process Framework for Design-Build Contractors

Level: Intermediate
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA

Abstract: Infrastructure megaprojects (a) are Complex Adaptive Systems involving large number of stakeholders having conflicting objectives and a common goal (to establish an operational asset), (b) are almost always procured by government entities on Public Private Partnership or Lump Sum Design-Build basis, and (c) have Strategic Asset Planning stages stretched over years (if not decades) enduring political, regulatory and public scrutiny and biases. These characteristics make the infrastructure megaprojects highly prone for changes during Project Implementation stages. Changes not resolved among contract parties result in claims. Claims erode parties’ capital efficiencies and hamper the partnering relationships essential for project success. Hence, contract parties at megaprojects prefer to avoid claims.

This paper briefly discusses challenges faced in infrastructure megaprojects to contain the number and scale of the claims, and proposes an integrated framework of contract management, project controls (time and cost) management, subcontract management, data management and training and skill development processes for avoidance of claims. This paper is built upon lessons learnt at transit megaprojects (in the US, Asia and Middle East) and relevant AACE International Publications.