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Construction Dispute Solutions

The document discusses common causes of construction disputes such as incorrect ground data provided in contracts, ambiguous contract provisions, and deviations from the original scope of work. It notes that contract issues are often at the heart of disagreements, which can lead to requests for time extensions or reimbursement of additional costs. To avoid disputes, the document recommends clearly defining contract scopes, educating staff to resolve issues at early stages, and settling claims proactively before they escalate.

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Neseth Eleuterio Badato
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126 views22 pages

Construction Dispute Solutions

The document discusses common causes of construction disputes such as incorrect ground data provided in contracts, ambiguous contract provisions, and deviations from the original scope of work. It notes that contract issues are often at the heart of disagreements, which can lead to requests for time extensions or reimbursement of additional costs. To avoid disputes, the document recommends clearly defining contract scopes, educating staff to resolve issues at early stages, and settling claims proactively before they escalate.

Uploaded by

Neseth Eleuterio Badato
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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“Construction Industry is a fertile

source of disputes”.

(Speaight QC, 2010)


- disagreement between parties
- argument
- debate
“ Contract issue is the heart of the disagreement”

- Lack of understanding of the conditions of the contract


- Delays on contract
- Requesting for either time extension or reimbursement of
an additional cost.
- The contract should be so designed that there are as
few extra items and/or deviations as possible.
- The scope of work in any contract should be
unambiguously defined.
- Such data includes information about ground conditions, depth
of groundwater table, rainfall and temperature data, availability
of power and water, etc.
- The estimates of a contractor are based on the ground data
provided with the tender documents
- Any difference between the ground reality during execution
and the conditions provided in the contract could easily be the
reason for disputes
CONSTRUCTION DISPUTES
RESOLUTION
NEGOTIATION
CAUSES LEADING TO ARBITRIATION

• Incorrect ground data


• Contracts containing faulty and ambiguous provisions
• Faulty administration of contract
• Deviations
• Suspension of works
• Contractor being of poor means
• Default by contractor
• No publicity involved
• Unreasonable attitude adopted by contractor
• Overpayment
• Levy of compensation for delay
• Delay in payment of bills
• Observation arising out of technical examination of works
HOW TO AVOID CONSTRUCTION DISPUTES

• During the course of work, to have variation orders settled without elevating them to the status of claims.
• ‘Be careful how the law of the land interprets ‘no damages clause’ in favour of the owner.’
• ‘Don’t throw good money after bad money in pursuing bad claims.’
• ‘Don’t set up ego barriers in settling disputes during the course of work.’
• Negotiated contracts have fewer claims than lump-sum contracts. Most owners’ engineers tend to assume
that the contractors have covered all risks while quoting. Highlight the areas not covered in the quotation.
• Study contract conditions and local laws thoroughly.
• Educate and train staff to act early at the lower level so that disputes do not escalate and rise to the highest
decision-making level.
• Do not pile up claims to the end, which result in the owner’s engineer also getting hemmed in. Settle them
early, before the amount looks big.
• Study contract conditions and local
laws thoroughly.
• Educate and train staff to act early
at the lower level so that disputes do
not escalate and rise to the highest
decision-making level.
• Do not pile up claims to the end,
which result in the owner’s engineer
also getting hemmed in. Settle them
early, before the amount looks big.
REPORTERS

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