On a project, claims – or contractual claims – are often unavoidable. They arise when differences or tensions appear between the parties (the client, the contractor, subcontractors and so on), whether over delays, scope changes or disagreements about responsibilities. While a claim is a legitimate tool for formalising such disputes, leaving it unresolved for too long can turn a simple point of friction into a spiral of damaging consequences for the whole project. Why? And, above all, how do you avoid that trap? This article sets out the risks of passively managing claims in order to play for time, and the benefits of a proactive approach.
The dangers of a claim that drags on
When a claim is left hanging for too long, it becomes a time bomb whose harmful effects keep growing. On complex projects (energy, construction, defence and so on), where budgets are vast, schedules tight and supply chains interdependent, these consequences are amplified. Below are the common risks that can flow from such a situation:
1. Rising tension between the parties
An unresolved dispute breeds mistrust. What starts as smooth collaboration between a client and a subcontractor can quickly turn into a climate of suspicion. Exchanges become defensive, positions harden, and an amicable resolution moves further away.
2. Deteriorating communication and collaboration
As the claim becomes bogged down, discussions focus on legal or contractual arguments and mutual accusations, at the expense of a constructive approach. On a supply chain project, for example, that breakdown can disrupt coordination between suppliers, causing knock-on failures.
3. Loss of productivity
A claim that drags on also ties up valuable human and intellectual resources. Project managers and their teams, who should be concentrating on technical progress – commissioning a power plant, delivering a piece of military equipment – find themselves bogged down in administrative work: drafting letters, compiling evidence, endless meetings. That dispersal of effort harms overall efficiency.
4. Delays and cost overruns
An undeniable consequence of playing for time, or of managing a claim badly, is that the initial delays get worse. In construction, a dispute over unanticipated additional works can freeze a site, triggering liquidated damages, extended mobilisation costs and a cost explosion. In the public sector, where budgets are closely scrutinised, these overruns can also sharpen tensions and damage decision-makers’ credibility.
5. Breakdown of dialogue and recourse to arbitration
The longer the claim sits there, the more the parties entrench their positions. Under contracts governed by standards such as FIDIC, widely used in energy and construction, this frequently leads to the involvement of independent dispute resolution bodies (DB/DAB) or to arbitration. Although structured, these routes are costly and time-consuming, and they often mark the end of any future relationship between the parties.
In short, letting a claim drag on is playing with fire: a simple point of friction becomes a major dispute that threatens the viability of the project.
Contract management: a proactive, strategic response
Faced with these risks, proactive claims management, driven by contract management, offers a winning alternative. The contract manager, as the pivot between the legal, financial, operational and relational dimensions of a project, plays a key part in defusing tension and preserving overall value. Here is why this proactive approach makes the difference:
1. Preserving the relationship and collaboration
By stepping in as soon as a claim emerges, the contract manager maintains a climate of trust. On a defence project involving several international subcontractors, for example, they can facilitate balanced discussions so that technical differences do not degenerate into a commercial cold war.
2. Limiting costs and delays
Swift resolution, driven by rigorous analysis of the contractual obligations and the facts, reduces the financial and schedule impacts. The contract manager anticipates potential drift and puts forward solutions before losses accumulate.
3. Refocusing teams on delivery
By taking charge of the claim, the contract manager frees the technical teams and project managers from that burden. On a construction project, for example, this allows teams to concentrate on progress on site rather than on contractual disputes.
4. Encouraging balanced solutions
Thanks to their command of the contract and their negotiation skills, the contract manager favours mutually beneficial compromises. Rather than an imposed arbitration, they can propose adjustments – such as an extension of time in exchange for a reduction in liquidated damages – that satisfy every party.
The value added by contract management lies in its ability to turn a claim from a problem into an opportunity to clarify and improve processes. In sectors where the stakes are critical, such as energy or the public sector, this proactivity is a lever for performance and resilience.
The contract manager: a strategic player at the heart of claims management
The contract manager is not a mere administrator; they are a strategist who anticipates, analyses and acts. On a project to build energy infrastructure, they watch the weak signals – late deliveries, changes to specifications – and step in before those deviations turn into formal claims. Their thorough knowledge of the contract (change clauses, notification mechanisms, penalties) lets them identify each party’s rights and obligations precisely.
They also ensure rigorous documentation, which is essential to support any position in the event of a dispute. In defence, energy or construction, where projects run for years, that traceability can make the difference between a quick resolution and interminable arbitration. Finally, by structuring the dialogue – through dedicated meetings – they keep the parties aligned on common objectives.
How do you avoid the trap? Contract management best practice
For proactive claims management, then, a few key principles, driven by the contract manager, are essential:
- Anticipation: spot the weak signals through regular communication and periodic contract reviews.
- Documentation: keep an accurate record of events, decisions and exchanges to avoid misunderstandings.
- Structured dialogue: hold focused discussions on the claim, with a clear timetable, to speed up resolution.
Conclusion: acting fast with contract management means securing success
A claim is not a fatality, but a warning to be taken seriously. Letting it drag on exposes the parties to tension, lost productivity and cost overruns that weaken the project. Conversely, proactive management, led by a capable contract manager, protects everyone’s interests, maintains operational momentum and optimises results. In sectors as demanding as energy, construction, defence, supply chain or the public sector, where every decision counts, contract management stands out as a strategic asset. So why wait? Acting fast means winning on every front.