Owners' Perception towards Causes of Claims on Construction Projects in Palestine

Abstract

The construction industry is one of the main Palestinian industries as it is considered an essential requirement and a major foundation for economic activities. A key factor to a successful construction project is to complete the project without the existence of claims. The objective of this paper is to identify and rank causes of claims in the construction industry from the perspective of local clients. Quantitative method was used in this research. The questionnaire was sent to 120 clients in the Gaza Strip and 101 valid responses were received and analyzed. The results found the main causes of claims are: borders closures, awarding bid to the lower bidder, road blockage, difficulties to pass between cities and governorate, residents’ interference during project implementation, and unexpected increase in material prices. Border closures found to be a political problem which is not easy to resolve. The findings indicate that owners may not award the contract to the lowest bidder. During project preparation and design, owners need to coordinate with the local residents of the area to inform them about the benefits of projects. The findings reveal that owners may assist contractors in removing obstacles of the project sites to avoid delays. Finally, these findings will be useful for international engineering and construction companies seeking a share in the Palestine market.