Disputes Prevention and Resolution Techniques in the Construction Industry

In order to reduce conflict and litigation in the construction industry, a comprehensive and systematic approach to the prevention and resolution of disputes must be adopted. However, one must understand the following concepts in order to implement the change: (RS23-1, p. 17)

• A change is required. Conflict and litigation are serious problems in the construction industry. Management resources which should be directed towards the primary goals of the industry are diverted, cost-effectiveness is reduced, and little of lasting benefit is achieved.
• Conflict and litigation are the end result of the claims process. The process starts when problems are permitted to escalate into disagreements and disputes. It continues when these, in turn, escalate into conflicts and litigation. The process grows in hostility and cost.
• Early and continuing involvement is critical. Prevention is better than resolution, but given the nature of the construction industry, disputes will occur. Management must take proactive steps throughout the project life cycle to prevent and resolve disputes.

In order to create a comprehensive system for dispute prevention and resolution, a project must:

• Start Right by having clear objectives, scope, and schedule in the pre-construction engineering and documentation stage. CII provides information to improve engineering and documentation which have a positive impact on dispute prevention.
• Stay Right by preventing problems from escalating into disagreements and disputes during construction. Partnering, team building, and other techniques to improve relationships will positively impact the ability to stay right.
• Provide for Resolution by focusing on the need to prevent disputes from escalating into conflict and litigation. Quick and efficient on-site dispute resolution that is fair to both parties must be taken. DRBs have been found to be effective.