Common Factors for Construction Dispute

A mixture of behavioral and environmental factors which can lead to construction disputes. Transaction in projects is generally a long time period with high difficulty and uncertainty, and it is tough to resolve each and every detail and predict molt unforeseen event A the other. As an effect. situations frequently arise which are not clearly addressed by the contract. The basic factors which drive the growth of construction disorder are behavior, contractual problem and uncertainty (The College of Estate Management, 2014). Progressive dispute resolutions tend to minimize uncertainty and improve working relationships. Ultimately, it leads towards success of the project.

common factors for construction dispute

Basic Factors of Construction Disputes

The basic factors of construction disputes are behavior. contractual problem and uncertainty which is mentioned in the below.

Contractual Problems

Standard forms of contract clearly prescribe the risks sod obligations each party has agreed to take. Such rigid agreements may not be appropriate for long-term transactions carried out under conditions of uncertainty. It is not uncommon to find amended terms or bespoke contracts that shift the risk and obligations of the parties, often to the party least capable of carrying that risk. Where amended terms or bespoke contracts we used, they may be unclear and ambiguous. As a consequence, differences may arise in the parties perception of the risk allocation under the contract. Where the parties have agreed to amend or bespoke terms, those conditions take effect in addition to the applicable law of the contract, which is continually evolving and being refined to address new issues.

Uncertainty

Uncertainty is the difference between the amount of information required to do the task and the amount of information available. The amount of information required depends on the task complexity and the performance requirements, usually measurement in time or to a budget. The amount of information available depends on the effectiveness of planning and requires the collection and interpretation of that information for the task. When uncertainty is high, initial drawings and specification will almost certainly change and the project members will have to work hard to solve problems as work proceeds if disputes are to be avoided.

Behavior

Since contracts cannot cater for every eventuality, wherever problems arise either party may have an interest in gaining as much as they can from the other. Equally, the parties may have a different perception of the facts. At least one of the parties may have unrealistic expectations, affecting their ability to reach agreement. Alternatively, one party may simply deny responsibility in an attempt to avoid liability.

common factors for construction dispute

Common Factors of Construction Disputes

Common factors of construction disputes are, site conditions, quality and workmanship, variations, project complexity, design, delay, differing goals, acceleration and incoordination which are mentioned below.

Site conditions

If the contract inadequately describes which party is to take the risk for the site conditions, disputes are inevitable when adverse site or ground conditions impede the progress of work or require more expensive engineering solutions. Even if the Employer, in good faith, provides detailed inform action on the site conditions to the contractor, if that information is discovered to be incorrect and the contractor has relied on it and acted upon it to their detriment, the Employer may be liable to the contractor for the consequences.

Quality and workmanship

In traditional construction contracts, disputes often arise as to whether or not the completed work is in accordance with the specification. The specification may be vague on the subject of the dispute in question, and each party to the contract may have a different view on whether the quality and workmanship is a acceptable.

Variation.

Variations are a prime cause of construction disputes, particularly where there are a substantial number, or the variations impact on partially completed work or are issued as work is nearing completion. The nature and number of variations can transform a relatively straight forward protect into one of unmanageable complexity.

Project complexity

In complex construction projects the need to carry out a proper risk assessment before a contract is entered into is paramount: yet this is often not done. There are numerous example of projects taking much longer than planned and contracted for because there was insufficient appreciation of the risks associated with the project's complexity. Inevitably the delay and additional costs the contractor incurs, and the owner's right to claim damage for delay, often develop into bitter disputes.

Design

Errors in design can lead to delays and additional costs that become the subject of disputes. Often no planning or sequencing is given to the release of design inform action, which then impacts on construction. Equally, the design team sometimes abrogate their responsibilities for the design, leaving the contractor to be drawn into solving any design deficiencies by carrying out that part of the work itself to try to avoid delays, and, in doing so, innocently assuming the risk for any subsequent design failures.

Delay

Disputes frequently arise in respect of delays and who should bear the responsibility for them. Most construction contracts make provision for extending the time for completion. The sole reason for this is that the owner can keep alive any rights to delay damages recoverable from the contractor. On international construction projects the question of any rights the contractor might have to extend the time for completion was a matter often addressed towards the end of the contract, when an overrun looked likely. From the owner's point of view, this made the examination of the true causes of delay problematical and inevitably led to disputes between the contractor and the owner as to the contractor's proper entitlement.

Differing Goals

Personnel engaged on a large construction contract are likely to be employed by one of many subcontracted firms, including those engaged as suppliers and manufactures. Each of these firms may have their own commitments and goals, which may not be compatible with each other and could result in disputes.

Acceleration

It is not uncommon for commercial property owners to insist upon acceleration of a construction project. Such examples might include the completion of a major retail scheme, and the need to meet key opening dates or tenant occupation in an office development. The construction costs associated with acceleration are likely to be less than the commercial risk the developer may face if key dates are missed. The circumstances surrounding acceleration are often not property analysed at the time the decision is made, and that inevitably leads to disputes once the contractor has carried out accelerative measures and incurred additional costs only to find that the developer refuses to pay.

Incoordination

In complex projects involving many specialist trades, particularly mechanical and electrical installations, co-ordination is key, yet conflict often arises because work is not properly coordinated. This inevitably leads to conflict during installation which is often costly and time consuming to resolve, with each party blaming the other for the problems that have arisen. Ineffective management control may result in a reactive defence to problems that arise, rather than a proactive approach to resolve the problems once they become apparent.

Quantity Surveyor Roles to Avoid Disputes

As a competent Quantity Surveyor should take part in a project from the initial stage to completion. When all the parties entered into a contract, sometimes they may face several disputes by various circumstances. When a dispute arises quantity surveyor should have to select a suitable dispute resolution method. In the construction industry quantity surveyors work as consultant's quantity surveyors, contractor quantity surveyors and client's quantity surveyors. However, generally quantity surveyor's role to act as an expert dispute resolver by having broad knowledge in the field, ability to take part in various roles in dispute resolution.

Quantity Surveyor should efficiently take part is a dispute resolution process in many ways to make a settlement. Therefore, roles of quantity surveyor's input throughout the project can be the facilitator (Arbitrator or Adjudicator or Member of Arbitration Tribunal) or an expert (Advisor the facilitators or Representing a party or Independent expert to dispute) or witness.

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Tuesday, October 22, 2019

Common Factors for Construction Disputes