Construction Claim Management among Small and Medium-Sized Contractors: A Case Study of Sri Lanka amidst its Financial Crisis

Abstract

This study reviews construction claims management among Small and Medium-sized Contractors (SMCs) in developing countries, focusing on Sri Lanka during its financial crisis. Economic crises intensify the sector’s inherent risks and complexities, increasing claims and delaying project delivery for SMCs. The research identifies deficiencies in current claims management practices and suggests strategies for improvement during such events. A mixed-method approach, including literature reviews, surveys, and expert interviews, explores claim types, origins, and the specific impacts of exceptional events on SMCs. The findings highlight challenges such as skill shortages, gaps in contractual knowledge, insufficient delay analysis, inadequate documentation, high staff turnover, and poor negotiation and communication. To address these issues, the study proposes strategies such as implementing robust record-keeping systems, improving contractual knowledge through staff training, and fostering better collaboration and communication with project stakeholders to enable SMCs to manage claims effectively during economic crises. This research provides practical suggestions to improve claims management practices and build resilience for future crises, contributing to the stability and development of the construction industry in similar contexts.