Avoiding and Resolving Disputes during Construction: Successful Practices and Guidelines

Abstract

\IAvoiding and Resolving Disputes During Construction,\N an updated and revised edition of the 1989 publication \IAvoiding and Resolving Disputes in Underground Construction\N presents a method for developing cooperative, problem-solving attitudes on projects through a basic risk sharing philosophy between owner and contractor. Special contracting provisions and practices that have been, and are being, used successfully on over 100 projects (over $6 billion of construction) to avoid or resolve disputes without resort to litigation are explained. Three provisions—disputes review boards (DRB), escrow bid documents (EBD), and geotechnical design summary reports (GDSR)—are described in detail and recommended on all projects subject to potential major disputes. Formation of a three-member DRB at the beginning of construction assists in avoidance of disputes and, if necessary, provides timely and equitable recommendations for non-binding resolution. Escrowing of the contractor’s bid documents provides a reliable data base for use in negotiating price adjustments and resolving disputes. Inclusion of the Federal Differing Site Conditions clause and a GDSR in the contract acknowledges the contractor’s right to compensation for materially differing site conditions and establishes a concise geotechnical baseline to clearly identify differing site conditions. These provisions are discussed and experience to date is presented, together with guideline specifications for implementation.