A Conceptual Framework for Managing Construction Claims in the Face of the COVID-19 Pandemic in Nigeria

Abstract

Claims are inevitable and have become an indispensable part of modern construction. The complexities, risks and uncertainties surrounding construction business environment often lead to unforeseen circumstances which disrupt the progress of works and give rise to contractual claims. One of such unexpected events presently causing disruption for construction contractors is the coronavirus or COVID-19 pandemic, which is exerting a significant but unprecedented impact on the delivery of construction projects, resulting in delays and additional costs for contractors, suspension of works and a disruption of the construction supply chain. Due to its novelty, the COVID-19 pandemic has presented a distinctive challenge for construction claims management. Therefore, if construction project parties are to prevent claims from escalating into dispute, it is imperative that the claims arising from construction contracts, as a result of the COVID-19 pandemic, are effectively managed. This study therefore examined the deficiencies of existing construction claims management process with a view to providing a conceptual framework for more effective management of claims that may arise as a result of the COVID-19 pandemic in Nigeria. Questionnaire responses were received from 162 construction small, medium and large contractors in Akwa Ibom State, Nigeria. The result indicates that failure to interpret contract terms is the most significant deficiency in contractual claims management process. Other important deficiencies in the claim management process include contractors’ inability to recognise claims events, failure to establish legal and factual grounds and poor records or documentation to support claims. With this, a conceptual framework for effective management of claims in the face of the COVID-19 pandemic was developed for use by contractors.