Why Claims Management?


You ask yourself, why does my project need a Claims Management by CARNEADES?

Allow me another question: Can you afford to loose money?

Chances:

  • Improvement of the project result by up to 15 % of the contract price possible


  • Long term increase of the company return


  • Avoidance of unjustified claims


  • Positive effect on in-team discipline


  • Saving of own ressources via external service


  • Project execution on secured financial baseline


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Relevance


The relevance of Claims Management can be shown on a simple example:

Contractor A works with full efforts of his high qualified engineers for four years on design, delivery and construction for a plant for the chemical industry. Within that time he deals with problems of his suppliers, solves technical deadlocks, which had not been considered by the employer, works on his own risk with documents still not approved by the employer, because he does not want to risk the completion date. This all he does for a margin of four percent.

Despite all those efforts the tight completion date finally cannot be kept. The works continue significantly longer than foreseen. The Employer checks the contract. A is requested to pay liquidated damages for delay as set out in the contract. Which amounts to? Right, five percent of the contract price. Now, A would leave the project with financial loss. His margin has been used up, deficit is impending. The work of four years has been blown.

A tries to prove with the available files that he is not responsible for the delay. But the past events cannot be followed up clearly in the flood of documents. Too much had been done on call, not enough was notified, even fewer was controlled or followed up. A now must rely on the goodwill of his client.

Compared to that, his position would have been strong if he would have installed, right from the beginning, a successful Claims Management, like it is offered by CARNEADES. Do not let it go that far like the contractor in our case study did. Just contact us and we will prove our abilities in a presentation for you.

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