Manual vs. Automated Claims: Why Claim Management Software Wins

The Challenges of Manual Claim Management

Manual claim management in construction typically involves a combination of paperwork, spreadsheets, and disparate communication channels. While this approach may seem familiar, it comes with significant drawbacks:

Time-Consuming Processes: Manually preparing, submitting, and tracking claims requires extensive administrative effort. According to industry reports, manual claims can take up to an hour or more per submission, leading to project delays and increased overhead.

High Risk of Errors: Human error is inevitable when handling complex calculations and documentation by hand. Simple mistakes can result in payment disputes, compliance issues, and strained client relationships.

Lack of Transparency: With documents scattered across emails, folders, and filing cabinets, tracking the status of a claim or retrieving supporting evidence becomes a daunting task.

Difficulty in Compliance: The Australian construction industry operates under strict regulations, such as the Security of Payment Acts. Manual systems make it harder to ensure compliance, increasing the risk of legal complications.

Limited Collaboration: Manual processes hinder real-time collaboration between contractors, subcontractors, and project managers, often resulting in miscommunication and delays.

The Rise of Automated Claim Management

Automation has transformed claim management in the construction sector. Claim management software centralises all claim-related activities-preparation, submission, tracking, and reporting-into a single, secure platform. This shift offers numerous advantages:

Efficiency and Speed: Automated workflows dramatically reduce the time required to process claims. For example, software solutions have been shown to cut processing time and costs by up to 50%, with some users reporting that tasks that once took an hour now take just five or ten minutes.