Claims Administration

Claims administration involves documenting, monitoring, and managing contested changes to the contract. Changes that cannot be agreed upon are called contested changes. Contested changes usually involve a disagreement about the compensation to the vendor for implementing the change. You might believe the change is not significant enough to justify additional compensation, whereas the vendor believes they'll lose money by implementing the change free of charge. Contested changes are also known as disputes, claims, or appeals. These can be settled directly between the parties themselves, through the court system, or by a process called arbitration. Arbitration involves bringing all parties to the table with a third, disinterested party who is not a participant in the contract to try to reach an agreement. The purpose of arbitration is to reach an agreement without having to go to court.

Exam Spotlight

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook

Post a comment