... at GAIDA VCM, your partner for Contract and Claims Management.
Signing the contract doesn’t mean that the project is secured. In particular plant projects, like power stations, are subject to a tremendous number of interface problems and unforeseen circumstances in the course of the project execution leading to variations, delays and disruptions. Such factors can never be sufficiently forecasted and contractually covered in advance.
Nevertheless, a lot can be done preventively by intelligent contract terms; however contract management does not end with the signing of the papers. It should be compulsory for plant projects from the first tender until the final take over.
A preventative claim management is the solution. It allows for flexible project management without loosing entitlements for cost compensation due to justifiable circumstances.
Preventative and pro-active claims management by no means contradicts cooperative project management, timely mitigation measures or amicable problem solutions, but it requires specific rules and regulations adapted by all parties involved:
- Claims are based on facts – not speculations or emotions
- Any claim must be justified on the basis of the concluded contract
- Compensation of costs is limited to those incurred in reality
Claims Management is the systematic identification, compilation, documentation and enforcement or defence of those project issues that have not been settled adequately between the parties at contract award. It is the monitoring of events, which might constitute an opportunity or threat, as well as the overall management of the contractually agreed project activities.
The preventative claims management requires a strategic project management strategy to avoid escalations as it allows for an early, well-documented and comprehensible presentation of entitlements for all contract parties and leaves no room for unjustified global reactions based on misinterpretations.