Use lessons learned and previous project data to identify problematic areas on projects that result in claims

Understanding and using the lessons learned and previous project data is undeniably crucial in the field of project management, particularly in the realm of claims management, a critical sector for PMI Construction Professionals. To this end, one must competently identify problematic areas that frequently result in claims.

Common Problematic Areas in Projects

Firstly, let’s have a look at some typical problematic areas on projects that commonly generate claims in the construction industry: miscommunication, deficiency in project planning, inadequate contract management, changes during construction, inaccurate estimates or schedules, and unforeseen site conditions.

• Miscommunication

  Several studies reveal that ineffective communication is one of the leading causes of claims in construction projects. To mitigate this, project managers should leverage previous project data and compare project performances to identify areas where communication may be improved.

• Deficiency in Project Planning

  Inappropriate project planning can often lead to claims. Lessons learned from previous projects can guide project managers by demonstrating what worked and what didn’t related to project planning on prior projects.

• Inadequate Contract Management

  Contract disputes frequently arise and result in claims. Insights and outcomes from previous project data can help elucidate pitfalls that lead to these issues and provide guidance on how to strengthen contract management.

• Changes during Construction

  Changes are unavoidable in any construction project. However, how these changes are managed can have significant impacts on the project. PMI-CPs should deploy lessons learned to discern which strategies have been the most effective in dealing with such changes in the past.

• Inaccurate Estimates or Schedules

  This problematic area often results in time and cost overruns, leading to claims. Lessons learned and previous project data should be used to refine the estimation and scheduling process.

• Unforeseen Site Conditions

  Unforeseen site conditions often lead to disputes and claims. Using historical project data can help predict potential unknowns and mitigate associated risks.

Importance of Gathering and Analyzing Data

In order to bolster the claim management, Construction Project Managers should systematically gather, organize and analyze lessons learned and the data from previous projects.

For example, they could draw on a past project where the communication channels were not adequately established, resulting in project delays and redundant work. Extracting ‘lessons learned’ from this scenario would suggest measures such as fostering better communication channels and discussing responsibilities and roles at the outset of a project, and regularly ensuring everyone is on the same page throughout the project lifecycle.

Another important aspect is applying data analytics to previous project data. For instance, by analyzing the historical data on the pattern of change orders in the project, Project Managers could identify which projects presented a higher volume of changes, when they where introduced and which were most impactful. This can highlight a pattern and help the project team to anticipate such changes in the future and reduce the likelihood of claims.

Throughout this exercise, one would draw upon the collective knowledge accumulated during prior projects, thereby converting tacit knowledge into explicit knowledge. This helps in improving decision making, and in the longer run, mitigates claims and disputes.

Conclusion

In conclusion, using lessons learned and prior project data effectively to identify problematic areas on projects is a crucial skill for PMI-CPs. By constantly learning from the past and implementing the lessons in the present, Construction Project Managers can significantly improve their project outcomes, reducing risk and successfully navigating claims when they do arise.