Charting a Successful

Charting a Successful
World Wide Dispute
World Wide Dispute
Resolution
Resolution
Presented by Ozzie F. Belcher
April 2, 200+ Ozzie F. Belcher, Copyright 2
Charting a Successful World Wide
Dispute Resolution
Osmund F. Belcher, (Ozzie
President of Belstar, Inc. Fairfax, Virginia
President of AACEI
Past President of Architectural Engineering Council
Society of American Military Engineers
April 2, 200+ Ozzie F. Belcher, Copyright 3
Charting a Successful World Wide
Dispute Resolution
Three Early Decision Tools
World Wide Dispute Prevention
World Wide Dispute Resolution
Causes of World Wide Dispute
ResolutionfConflict
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Charting a Successful World Wide
Dispute Resolution
World Wide Dispute Prevention
1. Comprehensive Design
2. Complete Contract Drawings
3. Efficient Project Nanagement
+. Project Documentation
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Charting a Successful World Wide
Dispute Resolution
World Wide Dispute Resolution
1. Discussionfagreement intra Organization
2. Discussionfagreement extra Organization
3. Umpire
+. Arbitration
5. Court
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Charting a Successful World Wide
Dispute Resolution
Causes of World Wide Dispute
ResolutionfConflict
1. Disagreement in methods of approaches.
2. Unforeseen conditions.
3. Change in market conditions.
+. !nterruptions in planned activities.
5. External factors.
6. Resource changes or new constraints.
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Charting a Successful World Wide
Dispute Resolution
The Use of Key data points to develop a
strategic planning chart:
1. The strategic planning DR chart roots from the
basic components of project management.
2. What are the usual issues?
3. !dentify Key issues that affect project.
+. !nvest in the right tools.
5. Engage the people within your organization.
6. Two samples to illustrate theory.
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Charting a Successful World Wide
Dispute Resolution
Establish an !ndependent Quality Control
Team:
1. Do not use someone who is already on
the quality assurance review team.
2. Short-term cost saving is not worth the
potential loss in long-term project gains.
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Charting a Successful World Wide
Dispute Resolution
Two Samples
1. A New Construction Project
2. A Renovation Project
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Charting a Successful World Wide
Dispute Resolution
New Construction Project - Chart
New Construction Project
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Charting a Successful World Wide
Dispute Resolution
Renovation Project - Chart
Renovation Project
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Charting a Successful World Wide
Dispute Resolution
6. Some General DR Submittal Procedures A Project Team Leader
Needs to be Familiar with:
- Notice of !ntent
- Eligibility clauses
- Ninor !tem changes
- !dentify a quantity percentage that qualifies for a change
- !dentify a cost percentage that qualifies for a change
- Najor !tem changes
- !dentify a quantity percentage that qualifies for a change
- !dentify a cost percentage that qualifies for a change
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Charting a Successful World
Charting a Successful World
Wide Dispute Resolution
Wide Dispute Resolution

Currency Fluctuations 8 Regional Uniform
Currency Fluctuations 8 Regional Uniform
Currency Changes
Currency Changes

Rise in value of one National Currency vs.
Rise in value of one National Currency vs.
another National Currency
another National Currency
2003 US Dollar vs. British Pound 22 increase vs. 2003 US Dollar vs. British Pound 22 increase vs.
Nost Asian nations 12 vs. Japan 2 Nost Asian nations 12 vs. Japan 2

Europe
Europe
Nember 8 Non Nember Nations Nember 8 Non Nember Nations
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Charting a Successful World Wide
Dispute Resolution
7. !dentify Realistic DR Goals:
- Consider a `not-to-exceed' budget to develop
the DR
- State an anticipated time to resolve DR
- Protect the established relationship with
Owners, Partners or long-term sub-consultants
- Set the right example for employees
- Think of your `Public' !mage
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Charting a Successful World Wide
Dispute Resolution

World Wide Supply Chains f !dentify Work
World Wide Supply Chains f !dentify Work
Location
Location

Stability
Stability

Access
Access

Nation Reinvestment Policy
Nation Reinvestment Policy

Nation Environmental Policy
Nation Environmental Policy
New Zealand Environmental Policy has been good New Zealand Environmental Policy has been good
for attracting a world wide movie industry for attracting a world wide movie industry
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Charting a Successful World Wide
Dispute Resolution

World Wide Wage Rates 8 Labor laws
World Wide Wage Rates 8 Labor laws

For Engineers Grads
For Engineers Grads
US 1.3 Nillion vs. !ndia 1.5 Nillion vs. China 2 Nillion US 1.3 Nillion vs. !ndia 1.5 Nillion vs. China 2 Nillion

For Factories
For Factories

$ US vs. Nexico vs. !ndia vs. Russia vs. China
$ US vs. Nexico vs. !ndia vs. Russia vs. China

$ 15 vs. $ 6
$ 15 vs. $ 6
vs. $ 3.5 vs. $ 2.3 vs. 0.25 cents
vs. $ 3.5 vs. $ 2.3 vs. 0.25 cents
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Charting a Successful World Wide
Dispute Resolution

World Wide Governmental Policies,
World Wide Governmental Policies,
Terrorism and tariffs
Terrorism and tariffs

National !ncentives
National !ncentives
Copy write protection laws f Promote new !ndustry Copy write protection laws f Promote new !ndustry
Partnership with local companies Partnership with local companies
Understand financial impact of long term jobs Understand financial impact of long term jobs

Terrorism Tolerance
Terrorism Tolerance

Tariffs: Steel !ndustry 8 Garment !ndustry
Tariffs: Steel !ndustry 8 Garment !ndustry
Ending in 200+ Ending in 200+
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Charting a Successful World Wide
Dispute Resolution
Loyalty Matrix
Choosing a Loyalty Strategy
Butterflies
-good fit between company's
offerings and customers' needs
-high profit potential
Actions:
-aim to achieve transactional
satisfaction, not attitudinal loyalty
-milk the accounts only as long
as they are active
-key challenge is to cease
investing soon enough
True Friends
-good fit between company's
offerings and customers' needs
-highest profit potential
Actions:
-communicate consistently but
not too often
-build both attitudinal and
behavioral loyalty
-delight these customers to
nurture, defend, and retain them
Strangers
- little fit between company's
offerings and customers' needs
-lowest profit potential
Actions:
-make no investment in these
relationships
-make profit on every transaction
Barnacles
-limited fit between company's
offerings and customers' needs
-low profit potential
Actions:
-measure both the size and
share of wallet
-if share of wallet is low, focus on
up-and cross-selling
-if size of wallet is small, impose
strict cost controls
Low
Profitability
High
Profitability
Short-term
customers
Long-term
customers
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Charting a Successful World Wide
Dispute Resolution
8. Typical DR Charting Nistakes:
- Lack of QAfQC review
- Lack of market surveyfresearch of similar DRs
- Lack of independent QC team data points
- Lack of independent QA team data points
- Lack of familiarity with Clauses and Conditions for Submitting a DR
- Notice of intent (Schedule)
- Eligibility
- Ninor items of workfNajor items of work
- Do not ignore the cost of developing new markets to replace existing
ones
- Do not ignore the current business market and impact on industry
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Charting a Successful World Wide
Dispute Resolution

!mportance of Non
!mportance of Non
-
-
Profit !nternational
Profit !nternational
Associations
Associations

!CEC 8 AACE!
!CEC 8 AACE!

World Wide Knowledge database for
World Wide Knowledge database for
!nternational data content for The
!nternational data content for The
Nanagement of Cost 8 Scheduling Data"
Nanagement of Cost 8 Scheduling Data"

!nternational recognized members,
!nternational recognized members,
publications, standards 8 Certifications
publications, standards 8 Certifications

!mportance of !nternational Neetings
!mportance of !nternational Neetings
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Charting a Successful World Wide
Dispute Resolution

Adaptability, Flexibility 8 Recognize
Adaptability, Flexibility 8 Recognize
Opportunities with the maximum benefit
Opportunities with the maximum benefit

Past Blue prints for success (!ndicators)
Past Blue prints for success (!ndicators)
Education, Record of performance in innovation 8 Education, Record of performance in innovation 8
research research
ROP !nternational copy rights 8 property ROP !nternational copy rights 8 property
Limited tariffs, national over regional interest Limited tariffs, national over regional interest
National status of leading or following National status of leading or following
National reinvestment (!nfrastructure 8 Education) National reinvestment (!nfrastructure 8 Education)
Continue to promote success Continue to promote success
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Charting a Successful World Wide
Dispute Resolution
1. Concept of quality control and quantity assurance reviews
2. Establish an !ndependent Quality Control Team
3. Establish !ndependent Quality Assurance Team
+. Loyalty Natrix
5. Narket Environment
6. !dentify Clauses and Conditions for Submitting a DR
7. !dentify Realistic DR Goals
8. Typical DR Charting Nistakes
9. Charting the Potential for Successfully pursuing a DR
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Charting a Successful World Wide
Dispute Resolution
Renovation Project - Chart
Renovation Project
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Charting a Successful World Wide
Dispute Resolution
New Construction Project - Chart
New Construction Project
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