Variations and Claims in International Construction Projects in the MENA Region from Last Decade

Abstract

This study delves into the dynamics of 'Variations' and 'Claims' within construction projects, specifically under the FIDIC-Red Book 1999 framework. The study aims to identify, categorize, and devise mitigation strategies for key types of variations and claims aligning with the FIDIC conditions of contract. The research is drawing on inputs from construction industry professionals including contract administrators and project managers, focusing on the MENA region. This choice is driven by the region's extensive adoption of FIDIC standards and its rapidly growing construction sector. Data collection encompassed a questionnaire distributed to 80 industry experts predominantly through interviews that focused on countries like Saudi Arabia, UAE, Kuwait, and Egypt. These locations were chosen to reflect diverse construction practices and the involvement of international firms. Utilizing SPSS-V.25 for statistical analysis, the study uncovers the most prevalent and impactful causes of variations and claims, highlighting the critical need for managerial intervention. A key feature is the integration of scientometric analysis for a quantitative finding. A significant addition to the methodology is the implementation of a k-means clustering analysis. The survey had high internal consistency with a Cronbach's alpha of 0.97, and respondents reported frequent and significant claims like delayed drawings, ambiguous documents, and client changes. The results showed that effective claims management requires clear communication and balanced contracts, while poor design and contract documentation cause variations and claims. Spearman's correlation showed strong positive relationships between certain claim types and causes, emphasizing the importance of dealing with these factors to reduce claims. Most respondents said the survey could predict and reduce claims.