Survey of Claim Pricing of Construction Projects in Thailand

Abstract

Efficient construction claim management is necessary for all parties in a construction project. Claimpricing is one of the most important sub-processes of claim management, which gives substantive descriptionand details of extra costs incurred or to be incurred due to change. This paper aims at 1) finding suitable pricingmethod for each claim component of both contractors and employers, and 2) surveying claim pricing process ofexisting employers’ claim management system. The research was done by reviewing literatures, analyzingFIDIC’s “Conditions of Contract for Construction (First Edition)”, and performing interview of 29 key staff fromboth public and private organizations. It was found that there are 23 contractor’s claim cost components and 22employer’s claim cost components. From the survey results, Thai construction industry has much simpler claimpricing methods than those theoretically described in international practices in several aspects, i.e. the numberof claim components and the indemnity method. This factor should be recognized in the development of theindustry dealing with the high international competitive atmosphere in the future.

Performance Prediction of Construction Projects Based on the Causes of Claims: A System Dynamics Approach

“…In this study, the methods of settling claims were also examined and the priority of use in projects was classified (negotiation, mediation, arbitration, and litigation) [17]. Another study was conducted to examine the process of managing construction claims in Thailand [18]. Hassanein and El Nemr (2008) investigated the claim management in the Egyptian construction sector.…”