“Construction Industry is a fertile

source of disputes”.

(Speaight QC, 2010)

- disagreement between parties
- argument
- debate
“ Contract issue is the heart of the disagreement”

- Lack of understanding of the conditions of the contract

- Delays on contract
- Requesting for either time extension or reimbursement of
an additional cost.
- The contract should be so designed that there are as
few extra items and/or deviations as possible.
- The scope of work in any contract should be
unambiguously defined.
- Such data includes information about ground conditions, depth
of groundwater table, rainfall and temperature data, availability
of power and water, etc.
- The estimates of a contractor are based on the ground data
provided with the tender documents
- Any difference between the ground reality during execution
and the conditions provided in the contract could easily be the
reason for disputes
CONSTRUCTION DISPUTES
RESOLUTION
NEGOTIATION
 CAUSES LEADING TO ARBITRIATION

• Incorrect ground data

• Contracts containing faulty and ambiguous provisions
• Faulty administration of contract
• Deviations
• Suspension of works
• Contractor being of poor means
• Default by contractor
• No publicity involved
• Unreasonable attitude adopted by contractor
• Overpayment
• Levy of compensation for delay
• Delay in payment of bills
• Observation arising out of technical examination of works
 HOW TO AVOID CONSTRUCTION DISPUTES

• During the course of work, to have variation orders settled without elevating them to the status of claims.
• ‘Be careful how the law of the land interprets ‘no damages clause’ in favour of the owner.’
• ‘Don’t throw good money after bad money in pursuing bad claims.’
• ‘Don’t set up ego barriers in settling disputes during the course of work.’
• Negotiated contracts have fewer claims than lump-sum contracts. Most owners’ engineers tend to assume
that the contractors have covered all risks while quoting. Highlight the areas not covered in the quotation.
• Study contract conditions and local laws thoroughly.
• Educate and train staff to act early at the lower level so that disputes do not escalate and rise to the highest
decision-making level.
• Do not pile up claims to the end, which result in the owner’s engineer also getting hemmed in. Settle them
early, before the amount looks big.
• Study contract conditions and local
laws thoroughly.
• Educate and train staff to act early
at the lower level so that disputes do
not escalate and rise to the highest
decision-making level.
• Do not pile up claims to the end,
which result in the owner’s engineer
also getting hemmed in. Settle them
early, before the amount looks big.
REPORTERS