Construction Test 1 - Lecture 5 Flashcards
What are the three main objectives of this lesson?
Explain different conflict resolution methods.
What is a construction claim?
A request for additional financial compensation and/or a time extension.
What is a construction dispute?
A claim that cannot be resolved by negotiation at the project level.
Name some common causes of claims and disputes.
Poor project planning and design.
Design changes, errors, and omissions.
Lack of coordination between teams.
Changed soil or site conditions.
Insufficient bid preparation time.
Misinterpretation of contract terms.
Weather conditions and unforeseen events (e.g., COVID-19).
What are the main types of construction claims?
Contract Document Claims – Issues with contract terms or misinterpretations.
Defective Design Claims – Errors in plans and specifications.
Change of Work Claims – Additional work beyond the contract.
Negligence or Misinterpretation – Improper execution due to ignorance or carelessness.
Delay Claims – Delays caused by various factors.
Damage Claims – Financial or physical damages.
Price Escalation Claims – Unexpected cost increases.
Change in Site Condition Claims – Differing ground conditions.
Injury Claims – Accidents and work-related injuries.
What pre-construction strategies help mitigate claims?
Pre-Construction Conferences with all stakeholders.
Proper Submittals (drawings, samples) to clarify details.
RFIs (Request for Information) to resolve ambiguities.
How do change orders help manage claims?
They document any changes in project scope and ensure fair compensation.
Why is documentation crucial in claim prevention?
It provides written proof (emails, meeting minutes, reports) and visual evidence (drawings, photos).
What are the main types of dispute resolution?
Dispute Review Board (DRB)
Mediation
Arbitration
Minitrial
Litigation
What is the role of a Dispute Review Board (DRB)?
A three-member panel created at the project start to review disputes and make recommendations.
What is a limitation of DRBs?
They do not make legally binding decisions.
How does mediation work?
A mediator facilitates discussions and negotiations between disputing parties.
What are the benefits of mediation?
Informal and voluntary.
Confidential with no public record.
High success rate (>90%).
Disputing parties retain control over the resolution.
What is a drawback of mediation?
It is non-binding unless both parties agree to the settlement.
How does arbitration differ from mediation?
Arbitrators make a decision after reviewing evidence, while mediators help parties reach an agreement
What are the two types of arbitration?
Binding Arbitration – No appeals allowed; decision is final.
Non-Binding Arbitration – Advisory decision that may not be enforced.
What is a drawback of arbitration?
Arbitrators do not have to be correct on the facts or the law, and fees can be high.
What is a minitrial?
A simulated trial with simplified procedures where disputing parties agree on process details.
How is a minitrial different from a real trial?
It is private, flexible, and can be binding or non-binding depending on the agreement.
What is litigation?
The traditional court-based dispute resolution method
What are the drawbacks of litigation?
Expensive.
Time-consuming.
Public record.
Decisions are binding but subject to appeal.
What strategies can help prevent disputes in construction?
Proactive risk allocation.
Cooperation incentives.
Conflict management training.
Partnering agreements.
