Managing claims is an inevitable part of construction management. Projects continue to grow more complex, include dynamic processes, involve multiple stakeholders, and possess various uncertainties, making them prone to claim exposure more so than ever before. When ineffectively managed, claims can often lead to disputes, delays, and cost overruns that have the potential to make-or-break an entire project or even program. Therefore, having both a successful risk reduction and claim management strategy is essential to protect interests, avoid litigation, and maintain good relationships between the owner and various project stakeholders. Over the last decade, the Port of Long Beach has managed the completion of multiple high-profile capital improvement projects, as large as $146 million in contract value. Scope for these projects included over 4,500 linear feet of new wharf, over 5 million lineal feet of wick drains, and 30,000 track feet. We shall highlight mitigation strategies developed through extensive experience in negotiating significant time extensions and multi-million-dollar claims. Best practices for claim management will be showcased by examples of risk management, data collection, documentation strategies, seeking of legal guidance, and team dynamics. Finally, we will spotlight how these best practices can best be incorporated into future contracts, such as the Port’s upcoming Pier B On-Dock Rail Support Facility Program, which will include over 93,000 track feet of new rail installation. Through a proactive claim management process, we will share how all owners, organizations, and consultants can benefit from these learned lessons and reduce risk on their future projects.
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