ARZU Consultants is a leading project management consulting provider to the AEC (Architectural, Electrical, Civil, and Structural) sector. With a team of highly experienced project management consultants comprising of engineers, architects, and BIM specialists, ARZU has been assisting construction firms for over a decade. Having worked in different geographies with a variety of project challenges, our team has the experience and skill to understand the needs and how to deal with them all.
Starting from project bidding and award phases to project kickoff, our ARZU offers you complete peace of mind with end-to-end PMC services. Be it project planning, risk analysis, claims management, design audit, constriction cost estimation, or stakeholder presentation for government or regulatory approval, our project management consultants can handle them all. For more information, let’s get in touch for a quick call.
Being a specialist project management consulting services provider, we understand what all the documents needed by the regulatory authorities for project compliance and approval are. Here are some of our key PMC services:
Precise cost estimation being crucial for both project owners as well as stakeholders with respect to bidding, our consultants come up with the most feasible bidding numbers and documentation, keeping all possible future alterations and change orders in consideration.
As construction design, as well as stage plans, are important in terms of timeline adherence and cost approval without any delays in sanctions or financial disbursements, ARZU provides a rigid design audit to point out technical as well as operational flaws that might act as project roadblocks.
Our construction risk assessment service involves the preparation of a detailed checklist to assess all types of health and hazardous situations at the project site and recommendations as well as guideline documentation to be followed as per the government or regulatory mandates.
With years of experience, our project management consultants are tenured in reviewing contracts/sub-contracts and suggest appropriate changes in the interest of the project to stay on time and budget without much procurement or audit issues.
Extracting operational figures from the construction models and translating all those into easily consumable visual cues is one of the important offerings of our project consulting services that ensure appropriate resource and procurement planning at different stages.
Be it scenario analysis, claims assessment, claim quantification, claim identification, claim pursuance, claim mitigation, claim resolution, or claim prevention, ARZU Consultants provides comprehensive claims management services that you can rely on.
There are a number of key benefits that clients can avail of outsourcing project management consulting services to ARZU. Starting from our years of experience in handling projects to a skilled team of consultants having access to advanced infrastructure, all that at a highly competitive cost. With a variety of engagement models, including hourly or FTE basis, ARZU can be your PMC back–office, whether it’s an ad-hoc requirement or a long-term high-value project. If you are still unclear about your needs and how to go about it, just contact us, and one of our senior consultants can recive you through the entire process of engagement at no cost.
In a construction industry where people or participants with varying opinions, abilities, expectations, and knowledge of the process of construction work together in a competitive environment, conflicts are bound to arise. Conflicts, if not handled well, give rise to disputes, which in turn hinders the successful completion of a project.
Claim management is hence an unavoidable and essential process when it comes to construction project management as it continuously needs the practices of effective management all through the project’s life cycle.
A thoughtful early settlement on concerns involving two parties is cheaper, leading to a win-win result. Large scale construction projects require the need to avoid strain in the relationship or any sort of disputes that carries with it the possibility of any arbitral or litigious action from either party.
The agreement agreed upon by the construction project owners or contract issuing parties and construction enterprises or contractors is called constructional project contracts. These contracts are laid as per the basic construction procedures to fulfill specific construction and installation projects and also to define both parties’ obligations and rights. Both parties mentioned in the contract are not competitors but associates with varying functions to perform in order to achieve a common end result. Despite this, the difference of interest and opinion still arise, which in turn leads to conflict due to the fact that both parties try their best to protect their personal and financial interests.
One cannot always predict all things that may come up during the course of a contract. The difference of opinions and misinterpretation of various clauses in contracts is responsible for most contractual problems. A few of the reasons for contractual problems under these include:
Claims occur when the two parties disagreement on one or more clauses between the client and the contractor. Types of claims based on issues, rights claimed and other characteristics of claims.
Below listed Claims
Both parties involved must put in place a good construction claim management process to effectively handle claims. Issue identification, ascertaining the cost impact, and time of the claim are a few of the major issues in disputes and claims. The person or party who has raised the claim must notify them once they are identified. It is then upon the person raising the claim to validate or authenticate the facts. The claim will then be settled cordially or disputed, depending on what the other party decides. The claim management process from the viewpoint of a contractor is as follows:
Claim prevention process is meant to reduce the number of claims and is activated at contract formulation and pre-tender stages of a project. All requirements and aspects related to the project must be mentioned in the project plan, contract documents, and scope of work since there would not be any chance to prevent a claim after the establishment of a contract. Claims prevention is about being receptive to probable claim situations and taking necessary action to prevent them.
Claim mitigation happens when the insured undergoes a loss and has to do all that it takes to reduce or minimize the damage. Construction activities take place outdoor. It is advisable to reduce or prevent the chances of occurring claim throughout the course of the contract, and that can be achieved through the clearly defined scope, responsibilities and risks involved. Moreover, risk management plans have a key role to play when it comes to the phase of claim mitigation.
No two parties are willing to take additional financial and other responsibilities in a contract. The process of claim pursuance enables parties to successfully pursue a claim in a contract. When it comes to construction projects, many such natural eventualities are wasted due to improper approach that puts the party at risk. The claim pursuance process has two key areas – claim identification and claim quantification.
Claim identification begins with having necessary and accurate knowledge of the responsibilities and scope as stated in the contract. Accurate identification includes the interpretation of what the contract needs and also a documented description of the activity seen as additional to that needed by the contract. If you are able to identify a claim early, you will find more options to mitigate potential risk linked to it. All claims irrespective of whether it is submitted by the owner of the contractor needs a distinctive and unique solution and technique. Claim identification can be achieved by evaluating the contract provisions and the work scope. Inputs of the claim identification process include contract terms, work scope, the definition of additional time requested, and additional work.
Claim identification begins with having necessary and accurate knowledge of the responsibilities and scope as stated in the contract. Accurate identification includes the interpretation of what the contract needs and also a documented description of the activity seen as additional to that needed by the contract. If you are able to identify a claim early, you will find more options to mitigate potential risk linked to it. All claims irrespective of whether it is submitted by the owner of the contractor needs a distinctive and unique solution and technique. Claim identification can be achieved by evaluating the contract provisions and the work scope. Inputs of the claim identification process include contract terms, work scope, the definition of additional time requested, and additional work.
The reason a claim is quantified is to provide the contractors and the project owners clear information of all the additional costs incurred due to the change in contract. The comprehensive cost description gives both parties the chance to understand, estimate, negotiate and work out additional contract costs.
When there is a change in the claim, there will be many direct, indirect, and overhead costs. Moreover, there will also be costs incurred due to delays in the delivery of the project. Both parties need to understand, calculate and substantiate the different pricing elements carefully.
Despite the best effort to avoid claims, there still may be disagreement between two parties and raises questions of whether the claim is a change to the existing contract or whether the claimed compensation or time requested is proper. This is the time when a step-by-step process is devised to resolve these questions. If this process takes longer than anticipated, it will cost a lot to both parties. The aim hence is to resolve these issues as soon as possible and at the lowest point in the firm. The contract, negotiation, arbitration, and litigation processes will be conducted on the basis of the terms of the resolution.
Disputes between two parties in any construction project can make or break the project. Mismanagement of construction claims leads to costly wastage and damages. The contractors and the clients must hence establish a strong claim management system in their companies. It is important that both parties must be aware of the causes of conflicts to be able to successfully complete the project without compromising on the quality and without exceeding the set budget.
A team of established and well-trained professionals who understands the nuances involved in contract management can prove very handy for a better understanding of the contract. Arzu Consultants is one of the leading project management consulting service providers that helps organizations in risk assessment, claims identification, prevention, and resolution.
With specialized BIM, MEP, and project management consulting services,Arzu can assist your team in managing any construction disputes, whether it is the prevention of disputes, settlement in the early stage, or binding resolutions in big and complex projects. We work in close tandem with the top management and legal counsels to arrive at the best possible solution. Contact us for expert advice to avoid and resolve critical construction claims.