Indian construction industry contributes INR 2754.48 billion to the Indian economy and employs nearly 40 million people, making it the second largest industry after agriculture and largest direct and indirect creator of employment. Accounting for 8% GDP of the country in 2018, the industry is divided into three segments- real estate construction, infrastructure building and industrial construction. In the uncertain, complex, multiparty and dynamic environment of construction projects, on-schedule project completion is difficult to achieve and hence the industry is always open to disputes and claims. Claims have negative impacts on project and become an inevitable burden to the industry. Despite of having high time and cost impact on projects, a great sum of funds is wasted in mismanagement of the construction claims leading to serious damages to both the parties. Construction disputes may arise from unresolved claims leading itself to third-party intervention, escalating into arbitration and even litigation which is very time-consuming, costly and potentially detrimental to the bilateral cooperative relationship.