What does the government aim to achieve by resolving disputes prior to a formal claim?

The government aims to resolve disputes prior to a formal claim primarily to reduce litigation costs. Engaging in informal dispute resolution processes can save both parties time and financial resources that would otherwise be expended on lengthy litigation. By addressing issues early, the government can minimize the need for formal claims, which often require extensive legal work, court fees, and other associated costs. Additionally, informal resolution methods can lead to quicker outcomes, allowing projects to continue without the disruption that formal disputes can cause.

While increasing contractor satisfaction, ensuring compliance with regulations, and maintaining control over contractors may be beneficial outcomes of resolving disputes amicably, the fundamental goal of this practice primarily revolves around the financial implications and efficiencies associated with avoiding formal litigation.