An effective claims prevention training program and diligent project management are critical for any successful construction project. By implementing best practices in these areas, companies can help reduce risks, avoid unnecessary claims, and ensure projects are completed on time and budget. Here are some top tips for claims prevention training and consulting in project management:
1. Determining project requirements upfront. Vague or incomplete requirements are one of the biggest sources of claims and disputes. Before work begins, invest significant time to comprehensively define the project scope, objectives, deliverables, schedule, and responsibilities. Carefully review contracts and drawings and resolve any inconsistencies or gaps. Getting alignment early prevents surprises down the road.
2. Conduct thorough constructability reviews. Bring together project teams for intense constructability reviews at the beginning of projects. Carefully evaluate plans to identify design errors and inconsistencies. Addressing issues proactively is much less costly than after construction work has begun. These reviews also provide opportunities for value engineering and building project knowledge.
3. Implement robust change management processes. Scope changes mid-project can quickly lead to claims if not managed appropriately. Control changes with formal change management procedures for submission, review, approval, and communication. Be especially cautious of verbal change orders -- document all changes in writing, no matter how small.
4. Invest in detailed project planning and scheduling. Projects without detailed schedules often spiral out of control. Break down projects into manageable activities for better coordination and resource allocation. Regularly update master schedules and communicate changes to all parties. Staying on track per the schedule greatly reduces the chances of disputes.
5. Conduct regular project meetings and inspections. Consistent communication and oversight are essential. Hold regular project meetings to get status updates from different stakeholders, discuss ongoing activities, and resolve any emerging issues. Also, perform rigorous inspections at milestones to verify work complies with contract requirements before signing off.
6. Implement strong subcontract management procedures. Poor subcontractor management causes many claims by general contractors. Define subcontractor requirements and obligations upfront. Implement a rigorous subcontractor prequalification process, including detailed reviews of past project experience, specialized expertise, staffing levels, equipment resources, and financial stability.
7. Provide ongoing claims prevention training. Require construction managers, field engineers, superintendents, and key subcontractor leads to participate in periodic claims prevention training. These workshops reinforce best practices and provide learnings from past project claims. Maintaining skilled staff with claims prevention knowledge is invaluable for avoiding pitfalls in current and future projects.
8. Document everything comprehensively throughout projects. Extensive documentation is critical in construction projects. Keep detailed daily logs of activities, issues that arise, meeting notes, requests for information, change notices, clarifications, and more. Thorough recordkeeping demonstrates proper management procedures were followed and provides justification if claims arise.
9. Perform contract closeouts systematically. Do not rush contract closeouts. Thoroughly review project records to confirm all requirements have been fulfilled, paperwork is complete, payments have been issued, claims have been recorded, outstanding issues have been documented, etc. Following methodical close-out procedures reduces the possibility of issues resurfacing down the road after teams have disbanded.
Implementing these project management and claims prevention best practices takes diligence and commitment. However, the effort pays major dividends through more profitable, successful projects with fewer claims headaches. Wise construction firms invest heavily in these areas, understanding their direct impacts on reputation and bottom line.