CBPM 2025 · Vol. 2025, Issue 1

A Conceptual Framework for Managing Employers' Claims in Mega Construction Projects

Makgopa Tshehla

Keywords: Employer’s claims, Constructability, Construction claims, Contracts management

Abstract

Mega construction projects are often associated with high-cost overruns. Most of these costs are associated with construction claims. The contractors mostly submit these claims against the employer. Contractors can successfully defend their claims. Some of these claims are supposed to be apportioned between the two parties. However, in most cases, the Employer's claims are not submitted. The purpose of this study was to determine the effect of employers' claims on the reduction of construction cost overruns. The study employed a quantitative research approach. The study adopted a purposive sampling technique with a sample size of 50 respondents. Data was collected with a survey questionnaire from professionals involved in the design and execution of projects within the construction industry, based in Gauteng province in South Africa. The respondents include Construction Project Managers and Quantity Surveyors. Results of the survey were analysed using the relative importance index statistical method, which resulted in the identification of the cost overrun factors that could lead to construction claims for a multi-contractor construction project. These factors include contract management, constructability, access to the site, coordination of the work of the contractors, incompetence of contract managers responsible for claims and poor planning. The findings of the study reveal that there is a lack of effort from the employer's side to mitigate the risk associated with the identified cost overrun factors. The study recommends that construction management companies should work together with the employer to develop practices to manage construction activities to avoid claims.