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Mediation
Dispute Review Boards
Arbitration
Litigation
Opening Session
Session information compiled by members of the Dispute
Resolution Methods Sub-Committee of the Claims
Avoidance and Resolution Committee
Sub-Committee Members and Contributors:
What is a Dispute?
A Change Proposal?
A Claim?
A Delay Submittal?
An Owner and a
Contractor
have a site meeting to
resolve some open issues.
Negotiation
Mediation
Avoidance
Even avoidance isnt avoidance
In construction we have lots of reasons to avoid
confrontation
In construction, 99% of avoided disputes
become bigger they fester they dont
self-resolve
But sometimes
resolution takes
a while
Negotiation
Dispute resolution between the parties involving
only the parties
Casual
Conversations, emails, texts, phone calls
Formal
Meetings, documentation, presentations
Resolution
Regardless of how you got there:
Put it in writing
Mediation
Mediation: Bringing in a respected, neutral,
uninvolved person to help everyone reach a
mutually acceptable resolution
The mediator DOES NOT decide
Mediation may not resolve a dispute
Key Points
Voluntary
The resolution is binding, but the process is not
There is no such thing as Binding Mediation
Mediation
The Parties must agree to mediate
Mediation Resolution
Looking for Interests
The Apparent Position
$$
The Change
Request Amount
Budget
Cash Flow
Schedule
Client Relationship
Industry
Reputation
Arbitration
Arbitration is the submission of a dispute to one
or more impartial persons for a final and binding
decision, known as an "award."
Non-Binding Arbitration
When the parties agree to Arbitrate, but also agree that
the result will only be binding if all parties agree to
accept the decision
Many view this as a dry-run
Arbitrator Selection
Big Benefit: You choose your Judge
The Hearings
NO Ex Parte communications
Arbitrator sets schedule
Proceedings are formalized through rules
Evidence is presented through sworn testimony
Arbitrator may question the witnesses and the
attorneys
The Decision
The Final Decision is Final
There are very few accepted ways to overturn a
Decision:
The Arbitrator failed to hear evidence
Litigation
Litigation
Getting There
Many times contract defined
Any party can initiate: Im gonna sue you!
Adjudicator Selection
The Judge is assigned
You may be able to choose a jury
Hearings
Strict rules of evidence
The Courts schedule your schedule just doesnt
matter.
Litigation - Process
Tedious
Litigation - Frustration
Cancel your vacation, youre scheduled to be in
Court
But the Court will delay, as you are trailing
When you do arrive, plan on short days with lots
of vacant time
Remember the money you are paying your team
to be there.
Litigation Closure
Im just so glad,
I won
In Summary
The Descending Arrow of Escalation
Avoidance
Self-Decided You Keep a Say
in the Decision
Negotiation
Mediation
Dispute Review Boards
Arbitration
Adjudicated - Someone
Else Decides
Your Fate
Litigation
Closure
? and A
Whats Next?
A 15 minute break, then
Delay Claims from the Owners and
Contractors Perspectives