Construction Dispute Resolution

Construction Dispute Resolution - National Commercial Services UK

 

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Construction Dispute Resolution - National Commercial Services UK

National Commercial Services specialise in the following areas

  • Construction Dispute Resolution
  • Careers in Construction
  • Quantity Surveyors
  • Construction Consultants
  • Quantity Surveying

Construction dispute resolution can be implemented in various ways on construction projects. They are usually concerned with the financial implications of events, occurrences, conditions or variations for which one party seeks additional payment or other redress (such as extension of time to complete the Works) from the other, on the basis of their interpretation of the facts and the contract conditions.

In the normal course of events, such differences would be raised as issues by the quantity surveyors on site, discussed by representatives of the parties and resolved amicably, payment of any amounts agreed to be payable, being made through the normal application and certification process.

In difficult cases, more senior members of the Parties' staffs will get involved in an attempt to resolve matters. However, if the two parties are unable to agree it becomes necessary to find another way to reach construction dispute resolution.

Our construction dispute resolution procedures attempt to break the stalemate which often arises when the negotiation process fails to achieve the desired results. They work either by bringing the parties together, finding common ground, building on partial agreements until the gap can be bridged, or by providing an opportunity for the Parties to present their respective cases to a third party who will then either suggest or order a settlement.

The choice of construction dispute resolution procedure will depend on the nature and extent of the dispute. Most construction contracts have provisions written into them. Traditionally, throughout the UK and overseas, this has been Arbitration. In the UK the Housing Grants Construction & Regeneration Act 1996 has introduced Adjudication as a right for both parties, in addition to any other provision in the contract. Adjudication has become in recent years a popular and effective method of dispute resolution.

The various options for construction dispute resolution are as follows.

Many contracts provide for the resolution of disputes through formal Arbitration proceedings in which an Arbitrator is appointed (normally a senior and well-respected Engineer, Barrister, Quantity Surveyor, Architect or other professional) who gives directions to the parties on the presentation of their respective cases, timetables and other requirements for him to reach a firm and binding decision on the merits of the case.

The Arbitrator can make awards in respect of principle and quantum and can only normally be challenged by appeal on matters of law. Each form of contract has specific provision for arbitration proceedings. Typical guidelines for construction dispute resolution are given under Clause 66 of the ICE (fifth edition) form of contract which refers to documents such as the "Institution of Civil Engineers' Arbitration Procedure (1983) or any amendment or modification thereof being in force at the time of the appointment of the arbitrator."

In construction dispute resolution the parties are usually represented in Arbitration by legal Counsel in the form of barristers supported by instructing Solicitors and quantity surveyors, engineers and others from the respective parties' staffs.

Arbitration has been criticized because of the time it takes for the proceedings to be concluded and for being too expensive. The Arbitrator can only operate outside the stipulated guidelines with the full agreement of the parties but with this agreement he can take steps to accelerate the process if he sees fit and has some scope to take a more inquisitorial approach.

Other alternatives to the full arbitration include shortened forms, which retain the basic procedures and allow both parties to put their case before the Arbitrator through written statements and in hearings. There are also options for an Arbitrator to hear a case on 'documents only' with associated reductions in cost and time.

Adjudication imposes strict time scales on the parties and as a result, drastically reduces the time scale and cost for the proceedings. It has the advantage of being binding on the parties but still challengeable under the arbitration provisions.

Other less formal methods can be used by agreement. The use of a mediator allows both sides to be heard and an impartial settlement to be arrived at, but still leaves in place each party's option to revert to arbitration.

The use of a third party specialist facilitator has been successful where the parties are willing to discuss their differences in front of a third party with a view to finding common ground for construction dispute resolution and then seek to resolve the issues through compromise.

Key to a successful construction dispute resolution is a high quality Quantity Surveying input such as that provided by National Commercial Services (NCS). The case has to be argued in front of a third party on the basis of solid fact, clearly demonstrating cause and effect and the entitlement to extension of time and additional payment. Techniques to achieve this have been developed by NCS to include, programming, time slice analysis, critical path analysis (CPA) and quantum evaluation. A highly professional approach enables the other construction professionals involved in the process to perform to the best of their ability.

 

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National Commercial Services

22 Dam Street, Lichfield, Staffordshire WS13 6AA - UK

Phone: 01543 418480   Fax: 01543 419110   Email: gk@ncs.u-net.com