Construction Delays and Other Claims - Construction Project Scheduling and Control - page 356

breakdown structure (WBS) is a convenient format for storing all documentation, as
it unifies all of the pertinent data for each constructible feature.
DELAY CLAIMS RESOLUTION
Most contracts contain clauses for the resolution of claim disputes. The process usually
starts with the simplest and quickest procedure and then goes into the next level,
and so on. Since the court system is time-consuming, costly, and complicated, other
alternative dispute resolution methods have been used. The following are the methods
that are usually used in resolving disputed claims:
1. Negotiation : This is the most direct method for resolving any type of con-
struction claim. In many cases, the “truth” may not be entirely known or
acknowledged, and “fairness” is seen differently by the different disputing par-
ties. Negotiation requires certain skills that tend to reduce the gap between
the negotiating parties. Although negotiation occurs basically between the
disputing parties, independent experts or consultants may be asked to give
opinions on certain issues. Negotiation starts with the parties at the project
management level, but higher-level officers may get involved if the lower-level
team fails to reach an agreement. While complete satisfaction may never be
reached, the objective of negotiation is to reach a solution that is acceptable to
both parties.
2. Mediation : When negotiation does not work, either because of lack of trust
or skills, an independent neutral or a mediator may get involved to bring the
disputing parties together. The mediator can be an individual or a team. The
mediator usually starts by explaining the role of a neutral in bringing the par-
ties to an agreement. The mediator must demonstrate neutrality and patience,
and must collect all of the facts before making any recommendation. Typically,
the mediator spends time with each party individually but—if the atmosphere is
encouraging—may bring the parties to a meeting. The mediator, like the nego-
tiator, must be skilled in narrowing the gap between the disputing parties and
focusing on the positive side of any proposed solution. For example, although
the dispute may be on financial issues between a general contractor and sub-
contractor, the mediator may sense that the subcontractor is concerned about
security and future work. The mediator may then convince the subcontractor
to accept a lesser financial settlement in exchange for an extended relationship
with the general contractor.
3. Dispute review board : Rather than waiting until the end of a project to settle
claims, a dispute review board (DRB) may be used to resolve disputes as they
arise on a construction project. An independent neutral panel with construc-
tion experience is selected by the owner and contractor when the contract is
signed, and the parties agree to call upon the neutral to assist them in resolv-
ing any disputes that may arise during construction. Since some cases involve