JAMS Global Construction Solutions -- Winter 2013


In This Issue:

Using Integrated Project Delivery to Avoid Construction Conflict and Disputes; Admissibility of Nonbinding Written Dispute Board Recommendations; Be an Expert with Experts and Notices & Events.

Excerpt from Using Integrated Project Delivery to Avoid Construction Conflict and Disputes -

Relationships in construction contracting are often characterized by divergent interests, compounded by uncertainty. These conditions often lead to conflict and disputes. However, conflict on construction projects is not inevitable. With the use of Integrated Project Delivery techniques, conflict can be reduced or managed and at best can be avoided altogether.

Traditional Models of Contracting -

Reduced to fundamentals, the traditional construction industry contractual arrangement for project delivery has been the Design Bid-Build model, where the Design Professionals enter into a separate contract with the Owner, who in turn separately contracts with the General Contractor, who in turn contracts separately with the various Trade Contractors, Suppliers and Vendors. Variations on this basic arrangement have included Contractors taking on the role of a Program or Construction Manager, either with or without contractual risk for the delivery of the project, or, where the Contractor or the Design Professionals take on design, construction and procurement roles in the nature of Design-Build or Engineer-Procure-Construct arrangements. Regardless of the project delivery structure, each of the parties to the traditional arrangement has had fragmented rights and obligations, and most often differing interests, goal and objectives—all of which was a fertile ground for conflict and disputes.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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