Knowledge management tool proposal for effective claim management in the construction industry: A lesson learned approach

Abstract

This thesis aims to address the critical role of knowledge management (KM) in the construction sector, focusing on improving claim management practices. The study is driven by two primary objectives: first, to understand the current practices of KM in the construction industry through interviews with sector leaders, and second, to propose KM toolkits tailored for claim management to reveal how such tools can contribute to process enhancements. The methodology unfolds across distinct phases, starting with reviewing existing literature on KM benefits and organizational practices and identifying challenges in the construction sector. Sector interviews were then conducted with leading construction firms to gauge their understanding and usage of KM, followed by similar interviews with consulting companies to compare practices. These interviews highlighted the need for improvements in KM within the construction industry, especially given the challenges and complexities of claim management. Furthermore, a review of the existing literature reveals a notable scarcity of research on applying KM theories to claim management. This thesis aims to address this gap by exploring and contributing to this under-researched area. The literature review on claim management analyzed the processes that must be followed according to the type of contract. The challenges and key aspects are highlighted for a successful claim management and dispute procedure from the contractor's side. Based on these insights, a KM toolbox that consists of four KM toolkits was developed to facilitate more effective knowledge sharing and organizational learning (OL) in claim management. Their applicability was tested using the lesson-learned approach across five real-life case studies. Additionally, expert claim managers provided validation by ranking the proposed toolkits according to their potential benefits. The research findings demonstrate that a strategic approach to KM in the construction sector can significantly improve claim management outcomes. The proposed KM toolbox, which consists of four KM toolkits, offers a structured framework to harness organizational knowledge, reduce claim resolution times, and foster a more proactive, collaborative culture. The toolbox aims to increase the efficiency of construction companies by exploiting OM and thus influence the sector in effective KM. Overall, this thesis contributes valuable insights and practical tools for construction firms aiming to transform their claim management processes through enhanced knowledge sharing and organizational learning practices. As per future studies, the KM toolbox that the thesis suggests could be digitalized, and real-life implementations could be tested.