Claims frequently occur during the course of construction projects in developing countries and Indian construction industry has always been impacted and devastated by excessive number of claims and disputes. This study is investigating the leading factors contributing to the generation of claims and their sources in Indian construction industry. Further, the study is conducted to determine the frequency of occurrence of different claim types in Indian construction projects, and to provide recommendations and suggestions to avoid/mitigate these claims. The objectives of the study have been achieved through a valid questionnaire that was distributed and obtained from different consultant's construction organizations working in Indian construction industry. The results showed that the most important factors that contributed to the generation of claims are contactor financial problem, excessive change orders by owner, slow decisions from owner, poor planning and management by contractor, and delay caused by the contractor. The results also showed that the most frequent claim type is extra-work claim. Several recommendations for the owners and contractors to mitigate claims occurrence are summarized at the end.