King Fahd University of Petroleum & Minerals College of Environmental Design CEM520 Construction Claims in Residenti

1. King Fahd University of Petroleum & Minerals College of Environmental Design CEM520 Construction Claims in Residential Houses In Saudi Arabia Presented to: Prof. Sadi Assaf By: Ali Al-Baggal Construction Engineering & Management

2. Objective: Identification the main types and causes of construction claims in residential houses in Saudi Arabia. The degree of importance of each type & cause of claims

3. Scopeand Limitations: • Restricted to Lump-sum contracts • Restricted to residential construction houses protects. • The Eastern Province of Saudi Arabia.

4. Definition • Construction claims in this thesis are defined as request, demand, and application for payment or notification of entitlement to which the contractor, rightly or wrongly at stage, considers himself entitled and in respect of which agreement has yet been reached.

5. Stages of Construction claims Owner Contractor Disagreement Disputes Protest Claims

6. Method of claims resolution Owner Contractor Claims Negotiation Mediation Mediator Arbitration Arbitrator Litigation The court Claim Resolution

7. Thesis procedure Objective Which Types are the more frequent? What are the causes? How sever is the problem? How is it solved usually? • Date Collection: • Researches • Reports • Books Preliminary Questionnaire

8. Continue.. Field Visits Interviews Questionnaire Part A: General Questions Part B: Number and amount of claims Methods of settlement Part C: Claims frequency with respect to type Claims frequency respect to year. Causes of claims.

9. Statistical Method, by (SAS) • Tabulation & Cross Tabulation. • Statistical Techniques • Ranking • Correlation

10. The results of part “B”

11. The result of Part C: (Frequency of each type) • Changes claims • Extra work claims • Contractual and claims • Difference in pricing claims • Difference site condition claims • Acceleration • Damage claims

12. The results of part C ( causes of claims) • Poor planning • Errors or Incomplete Documentation • Scheduling $ Estimating Errors. • Execution Deficiencies

13. Conclusion • Delays in payment are the main important cause of claims. • The documents of the contracts usually are not well written. • One of indirect cause is that there is no control of construction market.

14. Con.. • Both contractor and owner don’t execute good planning before starting project. So, a lot of change orders are created.

15. General Recommendation • Number of payments should be increase to be easier to be paid by the owner. • If there is a financial institution that is funding the project like the REDF, the contractor is recommended to have direct contact with it

16. Cont. • It is recommended to have a standard contract that is flexible. • The contractor should request the owner to write the change of order instead of giving oral change. • The government should establish a set of procedure to control the quality of construction work

17. The End

18. Types of Claims • Changes of claims. • Delay claims. • Extra work claims. • Contractual claims. • Deference in pricing and measurement claims. • Different site condition claims • Acceleration claims • Damage claims.( Return)

19. A survey of: • 20 Contractors • 19 Consultants • 5 Government offices related • Return

20. Causes of claims • Poor planning • Errors or incomplete documentation • Scheduling and estimating errors • Execution deficiencies (Return)

21. More detailed Return