DISPUTE RESOLUTION FOR TIME RELATED CLAIMS IN CONSTRUCTION

Introduction

The construction industry is one of those industries that is prone to time related delays and even disputes. It is therefore important for all the stakeholders to be well informed about the steps and procedures available to them in case such scenarios arise.

Causes of time related claims in construction
There are three major categories that could cause delays during the process of construction. These are due to input factors, the internal environment or exogenous factors. Understanding the nature of a delay is instrumental in knowing which step needs to be followed in dealing with it. Internal environments usually consist of scheduling issues; i.e. if the construction process was poorly scheduled. Additionally, it may comprise of certain financial problems or changed orders. Exogenous factors largely consist of external elements such poor weather or government laws and regulations. Inputs factors that may lead to delays in construction are largely related to the issue of manpower shortage. (Sweis, 2008)

In other words, delays may either be non excusable or excusable. For instance, when a delay is caused by labour disputes, unusual deliveries, and transportation deals that had not been foreseen or other causes that could not be predicted, then the affected party can consider forgiving the offending party. However, in other instances, then delays cannot be excused by the offending party. For example, when delays occurred during ordinary weather or when the subcontractor failed to meet his/her end of the bargain. It is also inexcusable to delay a construction if the project site was poorly coordinated. This may also be a problem when the contractor fails to finance the project properly or when there was poor workmanship, delays in material acquisition among others things. When a delay is caused by any of the latter factors, then it is likely that that person found guilty of the offense will be liable to pay damages. (Fewings & Jones, 2005)

How disputes are resolved in relation to time delays in construction
The first aspect that is involved in dealing with the disputes is mitigation of its effect. It is likely that the construction process may still be underway. Consequently, the affected parties have to look for ways in which they can minimise the distractions that would lead to further delay or that would cause ultimate project failure. (Kamara, 2002)

The next thing that needs to be done is to determine the root cause of the problem. One must be able to determine whether the causes of these delays are actually excusable or not. This is usually done by conducting a detailed evaluation and analysis of the construction site, the contractors, the subcontractor, workers, materials and all other interests groups required to make the project complete. It is usually plausible to break down all the disputes involved in the process little by little. This is because certain events may have caused different delays. Additionally, to effectively solve disputes, it is necessary to assess the overall liability involved and the actual damage caused to the affected party.

Thereafter, the two parties in the construction process are usually required to take part in a settlement agreement. This will require legal consultants who will be able to voice the concerns of each of the affected parties. At that time, it may be also be necessary to consider the legal representatives for each party as there is a whole team involved in the dispute resolution mechanisms. The assembly of this team may usually be necessary in mediation cases rather than in settlement arrangements. (Iyer, Chaphalkar & Joshi, 2008)

However, in the event that a dispute is quite severe or when the affected parties have failed to reach a compromise, then these two parties will be required to take their case to court. This usually occurs when the dispute has resulted in litigation in the part of the affected party. Usually, judges will listen to their respective cases and then come up with possible explanations about what could have caused them.

However, there are still alternative dispute resolution mechanisms in place. Alternative Dispute resolution came about after parties in the construction industry realised that the judicial system was overburdened with these issues. They asserted that a lot of time and money went into the settlement of litigation such that they had to look for other alternatives to solve their problems. In this case, parties that opt to follow this route will have to deal with dispute Review Boards. The latter boards are usually experienced personnel that have handled a series of both privately related and public related construction projects. In fact, estimates show that the latter board has dealt with close to sixty billion worth of projects over the past few years.

Usually, when parties opt to solve their problems using this route, then they are normally given alternatives through the use of recommendations. The latter board is given the mandate to look through some of the issues revolving around the case and then give their judgements on the matter. Statistics indicate that when people are given these options, than the success rates of those initiatives reach over ninety percent. (Mills, 2005)

Normally what occurs is that a panel made up of three individuals is required to solve the dispute. These are people who have had experience n the construction industry. Most of the time, members of the party are expected to select panel members so as to ensure neutrality. When the two parties have been chosen, then they are supposed to select another member who will serve in the panel. The latter party will be given the position of the dispute chair.

These members are then expected to sign an agreement that will then reflect the original contract that had been signed. The latter panel is supposed to be involved in the construction process from the time it commences until the end. This is so as to ensure that they have collected all the relevant data that is related to this party. Additionally, the presence of the panel ensures that whenever a dispute arises, then it is dealt with immediately. Normally, these members of the panel are expected to make legal visits to the construction site. (Morris & Pinto, 2007)

It should also be noted that the latter method solves disputes before they can culminate into costly litigations. Additionally, most of the problems encountered by these individuals are kept under control, however, when a dispute has become too much for the panel to handle, then they are usually expected to seek for some assistance from the Review board.

It should be noted that court proceedings can be another option when parties fail to reach a consensus. Usually the presiding judge will listen to both sides of the case and determine whether the time delay was caused by one of the parties or not. Evidence is usually submitted during the proceedings in order to clear or lay blame on another party. This may come in the form of supply invoices etc. The judge then determines how much will be paid as damages after listening to both sides of the story.

Conclusion
Time delays can be caused by a number of reasons. Parties may opt to settle or they may choose to litigate. In the latter scenario, a judge usually determines which party had wronged the other and then makes decision on the sum to be paid.

Reference

Iyer. K., Chaphalkar, N. & Joshi, G. (2008): Understanding time delay disputes in construction contracts; International Journal of Project Management, 26, 2, 174-184
Sweis, G. (2008): Delays in construction projects: Project Management Journal, 26, 6, 665-674
Morris, P. & Pinto, J. (2007): The Wiley Guide To Project Control; Blackwell Publishers
Kamara, J. (2002): Capturing client requirements in construction; Telford Publishers
Fewings, P. & Jones, M. (2005): Construction Project Management; Taylor and Francis
Mills, R. (2005): Construction Adjudication; RICS Books

The author of this article is a holder of Masters in Business Administration (MBA) from Harvard University and currently pursing PhD Program. He is also a professional academic writer. SuperiorWriters.Com>