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Claims Administration

The organized handling of contract claims, including their intake, evaluation and decision, and formal notification of the results to the involved parties.

Key Points

  • Manages formal requests for adjustment under a contract when the buyer and seller disagree.
  • Typical steps: receive and log the claim, assess it against contract terms and evidence, issue a decision, and communicate outcomes within required timeframes.
  • Relies on strong documentation and traceability for audits and potential negotiation, mediation, arbitration, or litigation.
  • Results may include approved change orders or equitable adjustments, denial of the claim, and updates to project records and baselines.

Example

A contractor files a claim for extra payment due to differing site conditions. The project team records the claim, reviews contract clauses on site conditions, analyzes cost and schedule impacts, renders a written decision, and formally communicates the outcome to the contractor, with next steps and timelines for appeal.

PMP Example Question

During execution, a seller submits a formal request for additional payment due to scope ambiguity. You log the request, evaluate it against contract terms, issue a decision, and notify the seller in writing. What process are you performing?

  1. Claims administration
  2. Contract change control
  3. Conduct Procurements
  4. Procurement performance review

Correct Answer: A — Claims administration

Explanation: Claims administration is the process of receiving, deciding on, and formally communicating outcomes for contract claims.

Leadership for Project Managers Course

Lead with clarity, confidence, and real impact. This Leadership for Project Managers course turns day-to-day challenges—unclear priorities, tough stakeholders, and cross-functional friction—into opportunities to guide teams and deliver outcomes that matter.

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Ready to influence without waiting for a bigger title? Join a community of ambitious PMs, sharpen your edge, and deliver with purpose—project after project.



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