Claim

August 24, 2025
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What is a Claim?

In project management, a claim is a formal request made by one party in a contract—typically a contractor or client—seeking additional time, money, or both due to a perceived change or breach in the agreement. Claims usually arise from disagreements about project scope, delays, unforeseen site conditions, or changes in regulations. They are handled according to the terms set out in the project contract and may lead to negotiations, mediation, or legal resolution if not settled informally. Proper documentation and adherence to procedures are essential when submitting or responding to a claim.

Key Points

  • It must be based on specific contract provisions and supported by detailed evidence.
  • It can involve schedule extensions, cost overruns, design errors, or contract changes.
  • Claims management includes identifying, documenting, and resolving these requests in a timely manner.
  • Delay in submitting a claim may result in forfeiture of rights under contract terms.
  • The goal of handling a claim is to resolve the issue fairly without escalating into a dispute or litigation.

Related Terms

  • A change order is often the cause of a claim when work is added or altered beyond the original agreement.
  • A risk register can help identify and track issues that may later become the subject of a claim.
  • Scope creep may lead to a claim if the contractor takes on additional tasks without formal approval or compensation.
  • Contract administration plays a central role in tracking potential triggers and managing the resolution of a claim.
  • A dispute resolution process outlines the steps a team should follow if they cannot resolve a claim through normal project management procedures.

Claim: Example

During a highway construction project, the contractor encounters unexpected underground utilities not identified in the project documents. As a result, the three-week delay and the need for additional excavation have impacted the work. The contractor submits a formal claim to the client requesting a schedule extension and reimbursement for the extra work. The claim includes photographs, logs, and correspondence to support the request.

Claim: Best Practices

  • Review the contract carefully to understand rights and obligations before submitting a claim.
  • Maintain clear and detailed project records from the outset, including communications and daily reports.
  • Submit it promptly, following contract-specified formats and timelines.
  • Focus on resolving it collaboratively through open communication and negotiation.
  • Engage legal or contract experts early if it appears likely to escalate into a formal dispute.

Additional Resources

Claim - A Guide to the Project Management Body of Knowledge (PMBOK Guide)     Claim - The Handbook of Project Management

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