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What is the claims administration process?

The process of documenting, processing, and resolving disputes between the buyer and seller. It follows the dispute resolution mechanism defined in the contract (negotiation, mediation, arbitration, or litigation).

What should a PM do when a vendor files a claim?

Review the contract terms, gather all documentation (change requests, approvals, communications), and follow the contract's claims administration process. Never accept claims without proper documentation.

Predictive · PMP Scenario

Resolving a Vendor Contract Dispute Through Claims Administration

Scenario

A vendor claims that the project team's changing requirements have caused significant cost overruns and schedule delays. The vendor is threatening to stop work and file a claim for additional payment. The contract is a fixed-price agreement. What should the project manager do?

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