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Abstract
The increase in magnitude and complexity of construction projects and the broadening of contractors’ activities in new markets as a result of the global economic considerations has increased the potential for claims in the construction industry. Furthermore, the special nature and magnitude of construction projects extending over a period of time with potential of changed conditions due to economic, legislative and regulatory policies are all factors that increase the probability of claims and disputes. This is due to the inability to accurately predict and account for all of these factors during the tendering phase, which may have a negative impact on the management, implementation, and contractual obligations of the parties to the contract during the construction phase. In light of these difficulties, construction projects are prone to many risks, consequently, to the rise of claims which are often controversial, and lead to the disruption of projects. Accordingly, Standard International Contract forms are a means to balance the distribution of risks, in a transparent and just manner between the various parties.
This elevates the importance of properly analyzing, evaluating and managing; the subject of claims in construction projects especially in large enterprises with significant impact on the national economy in all countries of the world. This issue is not limited to emerging and Third World countries, but also includes the countries of the world the first and second due to the presence of giant projects in these countries.
The reality of the problem is that it is extremely difficult to avoid claims in the construction industry. This is because of one very simple factor represented in human err. However, it may be possible to limit claims not only by good practice but also on the basis that being forewarned is often forearmed.
The aim of this research is to gain a better understanding of claims in construction projects in Egypt in an effort to reduce or eliminate them to the extent possible. The following steps will be undertaken to achieve this:
A- Conduct a Theoretical study (in the major forms of contracts JCT, ICE, GC/WKs and FIDIC) to have to the following :
1 - Define claims and its sources.
2 - Review the life cycle of a claim.
3 - Classify types of claims.
B- Conduct a Statistical Study to:
a. Review of construction claims arising to Cairo Regional Centre for International Commercial Arbitration according to the previous study.
b. Analyze these claims in Egypt and categorize them.
C- Conclusion and Recommendations
Our goal is to reduce and to the extent possible eliminate claims in Egypt, use the research to analyze the causes and develop recommendations to the construction parties (Employer, Engineer, and Contractor) to enable them to reach this goal.