Why Many Project Managers Avoid Submitting Claims — And Why It Hurts Contractors
Executive Summary
In the construction industry, claims are not confrontations, these are contractual rights. Yet, many project managers hesitate to submit these, even when clearly entitled. This hesitation often stems from fear of being held accountable within their internal systems for getting claims paid, misconceptions about damaging client relationships, lack of training, and the illusion of short-term comfort. The result? Contractors lose legitimate entitlements to time extensions, cost recovery, and protection against penalties.
In today’s construction industry, claims are not a sign of conflict, these are contractual right. Yet, in many contractor organizations, project managers hesitate or completely avoid submitting claims to Employers, even when these are clearly entitled.
Why does this happen?
1. Fear of Accountability
Submitting a claim means putting details on paper: delays, disruptions, cost impacts, and supporting evidence. This makes the project manager accountable within their internal systems for getting claims paid. Many find it easier to remain silent rather than risk questions about weak documentation or poor substantiation.
2. Misperception that Claims Damage Relationships
Some project managers believe that raising claims will “spoil relations” with the Employer. In reality, most standard contracts (FIDIC, ENAA, etc.) expect claims and provide clear procedures. Silence does not build trust; it only weakens the contractor’s rights.
3. Lack of Training and Awareness
Claims management requires knowledge of contract clauses, notice requirements, and substantiation methods. Without proper training, many project managers simply avoid the process because they don’t know where to begin.
4. Short-Term Comfort, Long-Term Loss
Silence may seem like the “safe path” in the short run. But in the long run, it leads to severe financial losses for the contractor, unclaimed time extensions, unrecovered costs, and higher risks of penalties.
The Way Forward
- Training & Awareness: Equip project teams with practical knowledge of claim preparation.
- Clear Systems: Build a culture where claims are treated as standard contractual processes, not as confrontations.
- Accountability Frameworks: Ensure PMs are responsible for protecting contractual entitlements, not just delivering physical progress.
At Conslex Contract Solutions LLC, we emphasize that claims are a proactive tool to protect contractors, not a cause of conflict. Our team has helped organizations worldwide transform weak claim practices into robust systems that safeguard both time and money. If you’d like to strengthen your claim management process, reach us at info@conslex.com.