Research On Claims Management Based On LCC Theory

The theory of Life Cycle Cost (LCC) is now used widely to control the construction project cost in the international. The appearance and development of LCC theory makes the project management more scientific. As claims management is an important content of project management, which should also broaden the research scope from the construction phase to the total project life cycle.The combination of LCC theory and claims management is to look at the claim with the view of the whole process. The manager should have the consciousness of claim and fully consider the risk of claim in decision phase. During implementation phase, we should pay attention to claims management and scrutiny of claims scheme carefully. In the complete phase, we need consider the actual situation of the project and grasp the opportunity of claim. During other phases of the life cycle, such as design phase, operation phase and demolition phase, as there is little possibility of claim, the consciousness of claim is also needed.In this paper, the claims management is studied on the theory of LCC. We will analyze the whole life cycle stages to explore the content and method of claims management. Combined with practical engineering, we analyze and research both the owner and contractors' claims management, and use matter-element theory, analytic hierarchy Process and bill of quantities to research respectively on the claim risk, claim scheme decision-making and claim in completion settlement. Based on the LCC theory, the research of claims management can help project participants to look at claim roundly and handle claim more reasonably and effectively.