Construction claims: is there a way to avoid them?

Claims and change orders are historically associated with cost overruns, mismanaged jobs, legal entanglements, and alleged spurious practices on the part of various contractors. There is perhaps no greater area of controversy in the industry today than that arising from the ´Claim Situation´. The advancement of claims and disputes has multiplied over the past decade. One may speculate as to the reasons, but it is evident that some of the factors influencing the serious and substantial increase in the number of claims for additional compensation are the complexity of the projects now being undertaken and the price structure of the industry, which does not permit the absorption of the unanticipated additional cost by the contractor. The best way to handle claims is to anticipate them and avoid them to the greatest extent possible. This should start at the outset of the project and not after commissioning. In today´s Design/Build or Bid/Design/Build project structures all major parties involved should clearly know which project information is available and which information will only evolve during the execution of the project. A certain element of risk must be recognized and accepted by all parties. Risk can only be mitigated, not eliminated.