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An Analysis of Claims and Claims Avoidance Techniques in the Ship Repair and Overhaul Industry.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
Pagination or Media Count:
Claims settlement and claims avoidance in the current ship repair and overhaul industry are extremely difficult. The intense competition and depressed economic status of the industry has forced several industry contractors to adopt contract buy-in and the submission of zero profit margin bids as a business strategy. The lack of commercial repair and overhaul work leaves the Navy as the dominant industry customer. Navy contracts accounted for 90 percent of the entire industry workload in 1986. This research examines the current claims avoidance techniques employed by the Navy and their effectiveness for future claims avoidance. It also recommends management techniques and procedures for the improving claims avoidance. This research has conducted a literature search, supplemented by interviews with Government and industry officials.
APPROVED FOR PUBLIC RELEASE