ASSESSMENT OF CLAIMS ADMINISTRAION BY MEDIUM-SIZED CONSTRUCTION COMPANIES IN ABUJA, NIGERIA: A CASE STUDY OF FCDA PROJECTS

Abstract

Claims have become a common occurrence in construction projects. A poor management and administration of construction claims often leads to project abandonment, significant cost overrun and time overrun. Therefore, the study assessed claims administration by medium-sized construction companies with a view to improving claims administration in Federal Capital Development Authority (FCDA) projects. Data were collected through the administration of questionnaires to construction professionals, including project managers, quantity surveyors, architects, builders, and engineers involved in FCDA projects in Abuja. A total of 166 questionnaires were distributed using census sampling techniques with 128 questionnaires returned and found suitable for analysis representing a 77% response rate. Data collected were analysed using percentiles, mean item score, and Kruskal Wallis test. The results revealed that the most significant causes of claims were fluctuation, delay in completion of work, changes in specification and variation. The study also revealed that there was no significant difference in the causes of claims in FCDA projects by organizational type. This study further revealed that the strategies for improving claims administration includes production of complete contract documents, adequate understanding of contract condition, and client understanding of the contractor’s right to claim. Furthermore, the study showed that there was significant difference in the response of the respondents in the different types of organization. The study concluded that there should be backup for claims such as physical measurement, presentation of photograph, pictures, other facts and figures. There should be also be complete contract document, proper understanding of contract condition and clients understanding of their rights. Based on the findings, it is recommended that stakeholders should pay adequate attention to claims and provide additional information to support claims where necessary.