Dispute Resolution Processes - Design-Build for Water and Wastewater Projects - page 295

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Dispute Resolution Processes
Michael C. Loulakis Esq., DBIA, Capital Project Strategies LLC
INTRODUCTION
It is well recognized that the DB project delivery model creates a contracting environment
that reduces the conflicts among the owner, designer, and contractor that are prevalent
in other project delivery models. This can be attributed to a variety of factors, many of
which are addressed in other chapters; however, three factors are particularly noteworthy.
1. The direct contractual relationship between the designer and contractor creates
the need for common goals and fosters teamwork, thereby eliminating much of
the conflict that can occur because of change orders and design interpretation
when the parties are not contractually bound. There is nothing to be gained
by the designer and contractor being in a “turf” battle when they are on a DB
project.
2. The successful implementation of DB mandates that the owner and DB team
work collaboratively throughout the project. Regular communication and feed-
back create an environment where misunderstandings surface early and openly,
and are generally resolved in a team-oriented approach.
3. Most design-builders are procured through some form of qualifications-based
process, even when price is the deciding factor. This encourages the DB team to
cooperate with the owner, particularly when past performance will be an evalu-
ation factor on future DB projects, whether for the current owner or another
owner.
Despite the best of intentions, however, problems can and do occur on DB projects.
Consequently, it is important for all parties to consider how they will avoid and resolve
these possible problems. This chapter outlines approaches to minimize conflicts during
DB team selection (i.e., procurement) and during execution of the project. Methods of
resolving disputes are also presented.
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