Property developers, construction contractors and others involved in the construction industry are frequent users of arbitration. The only limits to the nature and complexity of commercial disputes that can be referred to arbitration are the limits set by the arbitration agreement from which arbitrators (with help from both statute and judge-made law) derive their powers.
Expert Determination Clauses: A Tailored Alternative for Construction Projects?
In Short
The Situation: Construction disputes face unique challenges in addition to those faced in other types of commercial disputes. Parties often agree to adopt independent expert determination as a means of managing these challenges.
The Concern: Many boiler-plate independent expert determination clauses are not sufficiently tailored to the nature of construction projects or the particular circumstances of the project.
Read moreConstruction contract issues & what to do about them
No one wants anything to go wrong during a construction project. It costs money, wastes time and can end up being harmful to your company’s reputation. Shipping delays, weather and on-site accidents can be out of your control, but they can cause construction contract issues if you haven’t prepared for the possibility that they may happen.
Read moreDispute Boards: An Approach to the Efficient Resolution of Disputes in the Construction Sector
Imagine a complicated engineering and construction project that has lasted years and has already cost hundreds of millions of dollars. During the project, the contractor submitted dozens of claims for additional time and money – all of which the project’s owner has rejected. Amid mounting costs, claims from various subcontractors and suppliers boiling to the surface, and the threat of liquidated damages or even termination of the project, the contractor proceeds without receiving any relief from the owner. Although the parties have tried to resolve their disputes through negotiation and even mediation, they have not been able to reach an acceptable settlement. The contractor says it has incurred significant costs to perform the work and feels it is essentially funding the owner’s changes to the project. The owner, however, says the disputed issues are the contractor’s, not the owner’s risk. Accordingly, without a dispute resolution mechanism in place to resolve these disputes in real time, the costs continue to mount, and the prospect of a lengthy, expensive, and protracted arbitration or litigation looms.
Read moreDispute Boards: An Approach to the Efficient Resolution of Disputes in the Construction Sector
Imagine a complicated engineering and construction project that has lasted years and has already cost hundreds of millions of dollars. During the project, the contractor submitted dozens of claims for additional time and money – all of which the project’s owner has rejected. Amid mounting costs, claims from various subcontractors and suppliers boiling to the surface, and the threat of liquidated damages or even termination of the project, the contractor proceeds without receiving any relief from the owner. Although the parties have tried to resolve their disputes through negotiation and even mediation, they have not been able to reach an acceptable settlement. The contractor says it has incurred significant costs to perform the work and feels it is essentially funding the owner’s changes to the project. The owner, however, says the disputed issues are the contractor’s, not the owner’s risk. Accordingly, without a dispute resolution mechanism in place to resolve these disputes in real time, the costs continue to mount, and the prospect of a lengthy, expensive, and protracted arbitration or litigation looms.
Read moreFour Ways to Settle Construction Disputes
It’s unlikely to be in the construction industry for very long and not run into a dispute. Disagreements between the parties — owners and contractors, contractors and subcontractors, subcontractors and supply houses — can crop up when one party fails to meet its obligations, contractual or otherwise. Sometimes these controversies result from a clear breach of a contract provision; other times they are simply the consequence of a party’s reaction to or disregard of a particular issue.
Read moreFour Ways to Settle Construction Disputes
It’s unlikely to be in the construction industry for very long and not run into a dispute. Disagreements between the parties — owners and contractors, contractors and subcontractors, subcontractors and supply houses — can crop up when one party fails to meet its obligations, contractual or otherwise. Sometimes these controversies result from a clear breach of a contract provision; other times they are simply the consequence of a party’s reaction to or disregard of a particular issue.
Read more