This post was published to Mentor & Author at 10:29:20 PM 9/18/2015

Keep your project dispute free

Account EPC Training
Category engineering procurement and construction ; construction dispute

The construction industry produces wonders. But this industry has its share of disputes. Project
participants can avoid disputes. This is the theme of this blog.

We all know the importance of a well-defined scope of work. For the client, it means freezing the scope
borders before bidding. The client should avoid drafting a one-sided contract. One-sided contracts keep
the power with the client. Disputes happen when power creates injustice.

Another is an incorrect use of bargaining during ordering. Contracting is a buyer’s market (and seems it
will remain so). And contractors are famous for taking more risk than what they can handle. The client
should not knowingly put more risk than the contractor's capacity. This will lead to an imbalance later.
Some imbalance gets unduly transferred to suppliers which create a contractor-supplier dispute.
Another imbalance creates client-contractor dispute.

The most evident engineering problems are delays in document submission and approvals. In any
project, hundreds of documents travel late. Nowadays, we have software (one of them is Aconex) for
complete document management. There are hundreds of issues that are buried in the pile of
information? How to dig them out?

Wrong ordering, forgotten items, ordering without client concurrence. These are procurement disputes.

When the construction commences, a contractor could face a delay in site possession. A site condition
different from the bid. The client may lose interest in the project later. Or numerous punch-points,
changes. All these are examples of construction disputes.
Which project does not have quality problems? The dispute is the biggest defect which goes unnoticed.

It is not correct to blame the contract administrator for disputes. In a dispute, each one involved plays
his worst game. From the bidding team to the construction team.

There are many ways to resolve disputes. But the best way is to prevent it. Know the causes of disputes
and keep your project dispute free.