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1 AUTHOR:
Essam K. Zaneldin
United Arab Emirates University
56 PUBLICATIONS 110 CITATIONS
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INTERNATIONAL JOURNAL OF
PROJECT
MANAGEMENT
International Journal of Project Management 24 (2006) 453459
www.elsevier.com/locate/ijproman
Department of Civil and Environmental Engineering, United Arab Emirates University, P.O. Box 17555, Al Ain, United Arab Emirates
Received 3 November 2005; accepted 17 February 2006
Abstract
The construction industry in the United Arab Emirates is considered the largest single industry, yet, it is also very complex and the
most fragmented industry as it involves multidisciplinary participants. In this multidisciplinary environment, claims appear to hinder the
completion of construction and cause delays in delivering projects. This research presents the results of a study of the types, causes, and
frequency of construction claims in the emirates of Dubai and Abu Dhabi in UAE using a data from 124 claims for a variety of projects
in the two emirates. The data were analyzed and the results of this analysis along with recommendations on how to reduce/prevent claims
in construction are then presented.
2006 Elsevier Ltd and IPMA. All rights reserved.
Keywords: Claims; Construction industry; Contracts; International projects
Al-Fujairah
Umm Al-Quwain
Emirate
454
9.2%
0.7%
Raas Al-Khaimah
Ajman
4.9%
1.6%
Sharjah
5.8%
23.3%
Dubai
Abu Dhabi
0.0%
54.5%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Percent of Investment
Table 1
Proles of respondents
Type of respondent
Number of
respondents
Number of claims
Industrial
Heavy construction
Owner
Designer/consultant
Contractor
9
33
29
18
57
49
12
10
1
2
15
11
5
6
Total
71
124
455
Table 3
Ranking of each type of claims based on their frequencies
Other, 4.0%
Airports, 4.0%
Buildings,
30.6%
Water Lines,
11.3%
Sewer Lines,
12.1%
Power Plants,
3.2%
Roads, 34.7%
Types of claims
Rank
Changes claims
Extra-work claims
Delay claims
Dierent site conditions Claims
Acceleration claims
Contract ambiguity claims
60.5
60.2
51.1
40.5
39.1
32.7
1
2
3
4
5
6
Importance
index (%)
Rank
55.0
52.5
51.4
48.9
48.6
46.1
45.1
44.7
44.0
43.7
43.7
43.7
42.6
40.1
39.1
39.1
38.4
37.7
37.7
37.0
35.6
35.6
33.8
33.8
33.1
32.7
1
2
3
4
5
6
7
8
9
10
10
10
13
14
15
15
17
18
18
20
21
21
23
23
25
26
Table 2
Frequency of each type of claims
Types of claims
No response
Never
Rare
Average
Frequent
Very frequent
7
3
5
1
2
1
14
6
14
4
4
11
23
14
19
9
10
22
15
20
15
22
18
23
8
21
10
21
23
9
4
7
8
14
14
5
456
100%
35
30
25
20
15
30
80%
60%
10
5
0
11
10
7
3
40%
20%
120%
44
>2
0
12
.5
-1
5
15
-1
7.
5
17
.5
-2
0
10
-1
2.
5
57.
5
02.
5
2.
55
0%
7.
510
Frequency
50
45
40
Further analysis was also performed to nd the frequency of claims for dierent amounts requested by contractors and awarded by owners. In general, claim
amounts requested by contractors range from $111,350 to
$167,245,000. Fig. 3 shows the frequency of claims for different amounts requested by contractors. The gure indicates that the majority of claims (44 claims) are less than
or equal to $2.5 million. The next highest frequency (30
claims) is in the range from $2.5 to $5 million. A total of
only 11 claims are above $20 million. The solid line plotted
in Fig. 3 shows the cumulative percentage for the number
of claims for each range of claim amounts requested by
contractors. It can be observed from the gure that the
amounts requested by owners for around 60% of the claims
are less than $5 million.
120%
65
60
100%
80%
40
60%
30
16
20
40%
14
10
10
20%
2
0%
>4
3.
54
33.
5
2.
53
22.
5
1.
52
11.
5
0.
51
0
00.
5
Frequency
50
70
457
Table 5
Summary of claim amounts based on project types
Type of project
Airports
Buildings
Power-plants
Roads
Sewer-lines
Water-lines
Others
Total
Number
of claims
Amounts requested
by contractors (US$)
Amounts awarded
by owners (US$)
Ratio of amount
awarded/amount
requested
5
38
4
43
15
14
5
82,439,674
216,414,118
34,692,123
289,461,685
356,301,608
138,126,605
36,173,170
8,027,358
32,481,009
27,137,759
42,416,886
14,897,655
30,570,853
29,635,870
0.10
0.15
0.78
0.15
0.04
0.22
0.82
124
1,153,608,983
185,167,390
0.16
Litigation: 4.9%
Arbitration: 5.7%
Mediation: 12.2%
Negotiation: 77.1%
458
7. Concluding remarks
This study can be used to identify several problem areas
in the construction process in UAE. Steps should be taken
to clarify any issues or conicts that may arise in these
common problem areas. One of the common problem
areas is the changes type of claims which, according
to this study, was the most frequent type of claims and
needs special consideration. Extra-work type of claims
came second and contract ambiguity was ranked last.
It can also be concluded from this study that change
orders are the most frequent cause of claims while delay
459