This paper proposed an innovative way for mitigating negative
effects of contractor’s construction claims and disputes using a
risk retention approach. A conceptual RRG was created where:
1 the RRG is composed of both contractors who suffered and
who did not suffer from claims in previous projects to avoid problem of adverse selection; 2 the RRG will have adjusters with
rigorous experience in the matter of construction claims and disputes who will evaluate each submitted claim on a 0–1 evaluation
scale to avoid the problem of moral hazards;