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

Abstract

This study delves into the dynamics of ‘Variations’ and ‘Claims’ in construction projects. This study aims to identify, categorize, and devise mitigation strategies for critical types of variations and claims that are aligned with the contract’s FIDIC conditions. The research draws on input from construction industry professionals, including contract administrators and project managers, and focuses on the MENA region. The region’s extensive adoption of FIDIC standards and the rapidly growing construction sector drive this choice. Data collection encompassed a questionnaire distributed to 80 industry experts, predominantly through interviews focused on countries such as Saudi Arabia, the UAE, Kuwait, and Egypt. Utilizing SPSS-V.25 for statistical analysis, this 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 into a quantitative finding. Implementing a k-means clustering analysis is a significant addition to the methodology. The survey had high internal consistency with a Cronbach’s alpha of 0.97, and the respondents reported frequent and significant claims such as 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. The correlation analysis showed strong positive correlations between claim types and causes. To reduce claims and address these factors, most respondents said the survey could predict and reduce claims.

Keywords

• construction industry
• international contracts
• FIDIC 1999 Red Book
• variations
• claims
• scientific metric analysis