UNIVERSITY OF THE EAST

Graduate School
Manila

Name: Engr. Jan Adrian G. Hernandez Date: March 24, 2023

Student No.: 20220125702 GCT 7206-1S

Reading No. 100: CIAC Case No. 17-95

Disputes are unavoidable in the construction industry due to the complex nature of projects
involving multiple stakeholders with varying interests.

In CIAC Case No. 17-95, the contractor and owner disagreed over alleged non-compliance
with contract requirements, delays in completion, and payment concerns for a P
12,121,898.00 coliseum and cultural center project in Negros Occidental. The tribunal found
the owner entitled to liquidated damages due to the contractor's late project completion
despite repeated extensions. The contractor's liquidated damages claim was rejected by the
tribunal's determination of the contract's expiration date and significant completion. The
tribunal awarded billings and retention for the second issue. The owner's utilities restoration
and permit costs were deducted from the contractor's contract price after the owner's final
acceptance and the retention money release condition. For the third issue, the tribunal found
that the contractor and owner's additive and deductive work valuations were self-serving and
violated the contract. The contractor was a third party in the owner-consultant contract, so the
owner was not entitled to the 12% consulting fee. The tribunal didn't rule on the 4th issue,
whether the contractor could subcontract the remaining work to a third party. The subcontract,
which was mostly punch lists, was approved by the owner despite the contractor's complaints.
The tribunal ruled that the owner was justified in taking over the project and withholding
payments from the contractor because the contractor missed the extended deadline. After the
owner informed the contractor of the takeover, a third party finished the punch list by May 31,
1995. Consequently, the owner is interest-free.

In Case 17-95, the Construction Industry Arbitration Commission demonstrated the efficacy of
arbitration in construction dispute resolution. CIAC expertise, confidentiality, time and cost
efficiency, and flexibility benefit all parties. To reach a fair and just result, issues like
enforceability and impartiality must be addressed. Clear contracts and good communication
can prevent disputes, as shown by CIAC's role in Case 17-95. Such measures and efficient
arbitration can help the construction industry thrive and meet stakeholders' expectations.