Construction Claims: Frequency and Severity

Abstract

There has been increasing emphasis in recent years on construction contract claims and disputes. This paper examines the frequency of occurrence of 427 separate construction claims which were experienced on 22 federally funded and administered construction projects. The data examined include various claim types, the frequency of their occurrence and the average cost of these claims. Also, various factors thought to influence the frequency of claims occurrence were investigated. This study indicates that the largest proportion of change orders and modifications originate with the owner of the project or with those responsible to the owner.