This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
CHARTERED ARCHITECT/CHARTERED QUANTITY SURVEYOR CHARTERED ARCHITECT/CHARTERED QUANTITY SURVEYOR Professor of Building EconomicsProfessor of Building Economics
MOST INDUSTRIES ARE RENOWNED TO HAVE DISPUTE ORMOST INDUSTRIES ARE RENOWNED TO HAVE DISPUTE ORCONFLICTSCONFLICTS
THERE ARE MANY OCCASSIONS DURING THE PROCESS OFTHERE ARE MANY OCCASSIONS DURING THE PROCESS OFMANAGEMENT OF ANY PROJECTS WHERE SITUATIONS MAYMANAGEMENT OF ANY PROJECTS WHERE SITUATIONS MAYGENERATES A NUMBER DISPUTES OR CONFLICTS.GENERATES A NUMBER DISPUTES OR CONFLICTS.
THE CLIENT IS TRYING TO ACHIEVE THE BESTTHE CLIENT IS TRYING TO ACHIEVE THE BEST ± ± FINISHED PRODUCTFINISHED PRODUCTPOSSIBLE WITHIN BUDGETS TIME AND QUALITYPOSSIBLE WITHIN BUDGETS TIME AND QUALITY
THE SUPPLIER/SERVICE PROVIDER IS ALSO TRYING TO ACHIEVETHE SUPPLIER/SERVICE PROVIDER IS ALSO TRYING TO ACHIEVETHIS WITH THE POLITICAL ECONOMIC AND MARKET FORCES WHILETHIS WITH THE POLITICAL ECONOMIC AND MARKET FORCES WHILE
TRYING TO MAINTAIN HIS/ HER PROFITABILITYTRYING TO MAINTAIN HIS/ HER PROFITABILITY
IF EITHER PARTY FEELS THAT THE OTHER PARTY IS HINDERINGIF EITHER PARTY FEELS THAT THE OTHER PARTY IS HINDERINGTHEIR GOAL A DISPUTE MAY ARISETHEIR GOAL A DISPUTE MAY ARISE
PROJECTPROJECT UNCERTAINITYUNCERTAINITY The uncertainty arising from preThe uncertainty arising from pre--existing conditions, outsideexisting conditions, outside
forces and the complexity, which cause change beyond theforces and the complexity, which cause change beyond theexpectations of the partiesexpectations of the parties
PROCESS PROBLEMSPROCESS PROBLEMS Problems in the contracting process including contracts,Problems in the contracting process including contracts,
incomplete scope definitions, unrealistic expectations with regardincomplete scope definitions, unrealistic expectations with regardto the quality in terms of specifications cost or completion datesto the quality in terms of specifications cost or completion datesand poor performance in the execution of the workand poor performance in the execution of the work
PEOPLES ISSUESPEOPLES ISSUES Issues and problems arising between people, as a result of poor Issues and problems arising between people, as a result of poor
interpersonal skills, poor communication, lack of responsiveness,interpersonal skills, poor communication, lack of responsiveness,unethical opportunist behavior unethical opportunist behavior
BehaviorBehavior Organizations or persons initial action which stimulates theOrganizations or persons initial action which stimulates the
conflict :conflict :
As the supplier/service provider/contractor As the supplier/service provider/contractor
As the consultants As the consultants As the Employer As the Employer
As the sub contractor As the sub contractor
The greater the involvement, greater their effect will be on theThe greater the involvement, greater their effect will be on theincidents of conflictincidents of conflict
All conflict events emanate from the key actors in theAll conflict events emanate from the key actors in theorganizationorganization
Such as superiority of professionalsSuch as superiority of professionals
Attitudes of professionalsAttitudes of professionals
Culture of the supplier/service provider/contractor Culture of the supplier/service provider/contractor Body language of the actorsBody language of the actors
Loop hole engineering by partiesLoop hole engineering by parties
Due to disagreements among, partiesDue to disagreements among, parties
They are:They are:
Root causesRoot causes
Proximate causesProximate causes
Root causesRoot causes
The root causes are the seeds or potential conflictThe root causes are the seeds or potential conflictfrom inception of the project.from inception of the project.
They are:They are:
Unfair or unclear risk allocationUnfair or unclear risk allocation
Unrealistic pricingUnrealistic pricing submitted by a suppliersubmitted by a supplier
contract forms, Incomplete tender informationcontract forms, Incomplete tender information These causes lead to claims developed under These causes lead to claims developed under
Initial Response for ClaimsInitial Response for Claims
What ever the merits of the claim initial responseWhat ever the merits of the claim initial responsefrom the employer will not to concede.from the employer will not to concede.
Claim entitlement have a duty to comply with their Claim entitlement have a duty to comply with their obligations according to the contractobligations according to the contract
May decide to negotiate a claimMay decide to negotiate a claim
In negotiation it is important to understand theIn negotiation it is important to understand the psychology must be understood psychology must be understood
BrinkmanshipBrinkmanship ± ± unexpected cessation of unexpected cessation of
negotiations and serving of a arbitrationnegotiations and serving of a arbitrationnotice to force the hands of the employer intonotice to force the hands of the employer into
Has become a very adversarial processHas become a very adversarial process
Become very expensiveBecome very expensive
Long drawnLong drawn
It is important to review and improve the processIt is important to review and improve the process
since construction is a process where people comesince construction is a process where people come
together for a short period of time and then disbursetogether for a short period of time and then disburse
after the construction and the actors are unable toafter the construction and the actors are unable toaccommodate a long drawn out process of Arbitrationaccommodate a long drawn out process of Arbitration
Rules of arbitration should be adhered toRules of arbitration should be adhered to
The proper appointment of the arbitrators with concurrence of The proper appointment of the arbitrators with concurrence of the two partiesthe two parties
Agreeing of the costs of arbitrationAgreeing of the costs of arbitration
In the duties of arbitrators hearing of evidence and argumentsIn the duties of arbitrators hearing of evidence and argumentsof the parties or their agents in the presence of all parties or of the parties or their agents in the presence of all parties or their agents and determine the dispute in accordance therewiththeir agents and determine the dispute in accordance therewith
In the submission of the claim the parties have adhered to theIn the submission of the claim the parties have adhered to the
procedure procedure Deliver the award in writing to the court as set out inDeliver the award in writing to the court as set out in