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A Practical Way
to Settle Construction Disputes
Engr. P. A. LEONCIO, Jr.
RCE, M.PICE, M.ASCE; RCA, M.PICAM
CONSTRUCTION MANAGERS
CONSULTANTS
Past International
& Region 10 Director;
CONVENOR:
ASCE Philippines (2000)
Served as President; currently its
Executive Director.
CONVENOR (1986):
Executive Director
(July 1986-1989)
PHILIPPINE CONTRACTORS
ACCREDITATION BOARD
(PCAB)
REG. CONSTRUCTION
ARBITRATOR (Reg. 099)
PHILIPPINE INSTITUTE OF
CONSTRUCTION ARBITRATORS
& MEDIATORS (PICAM)
TRUSTEE
CHAIRMAN, International
Conference Committee
into REALITY.
Construction
consist of the
building/assembling
of infrastructure
elements.
The PRODUCT:
a Building, a Bridge, a
Road, a Dam, pipelines)
Similarities
between
CONSTRUCTION CONTRACT
and
MARRIAGE CONTRACT
Owner&Contractor Husband&Wife
Construction
Marriage
Product
Result
House
Home
Dispute
Disagreement
Suspension
Reccision
Termination
Legal Separation
Annulment
Divorce
When is there a
Disagreement ?
Honest disagreement
is often a good sign of
progress.
Mahatma Gandhi
A Disagreement can
however, lead to a
DISPUTE,
In a Dispute, Claims
would be involved;
There might also be
Counter- Claims
A DISPUTE would
also involve an
assertion of a right,
or a demand on
one side..
and met by
contrary claims or
allegations on the
other side..
A Dispute is a subject
of a Litigation;
When brought to
Court , it becomes a
SUIT (complaint)..
In order to resolve
a Dispute, one can
either go to
Mediation
Arbitration
or Litigation.
Janus Lionus
Just what is
ARBITRATION ?
It is a form of
alternative dispute
resolution (ADR)..
It is a legal technique
for the resolution of
disputes outside the
courts.
in Arbitration
The parties (Claimant & Respondent) refer the
dispute to one or more persons (called
Arbitrator/s or Arbitral Tribunal);
A TRIBUNAL
.. A person or institution (ex; CIAC) with the
authority to judge, adjudicate on, or determine
claims or disputes.
in ARBITRATION
The parties agree to be
bounded by the
Tribunals decision.
CONTRACTORS CLAIMS:
CONTRACTORS CLAIMS:
Balance of Payment
CONTRACTORS CLAIMS:
Standby Cost of Equipment &
Labor
CONTRACTORS CLAIMS:
Variation Orders (Change
Orders and Extra Works)
CONTRACTORS CLAIMS:
Release of Retention
CONTRACTORS CLAIMS :
Delayed Payment of Billings
CONTRACTORS CLAIMS :
Time Extension
CONTRACTORS CLAIMS:
Price Adjustment:
(Increased cost of materials, fuel, wages)
CONTRACTORS CLAIMS:
Interest..
OWNERS CLAIMS:
OWNERS CLAIMS:
Over-payment of
Advances (for
materials, equipment,
and labor assistance)
OWNERS CLAIMS:
Liquidated Damages
(delayed schedule)
OWNERS CLAIMS:
Non-conformance to Specifications,,,
OWNERS CLAIMS:
Actual Damages ,,,
Discourage litigation.
Persuade your neighbors
to compromise
whenever you can.
As a peacemaker the
lawyer has superior
opportunity of being a
good man
Abraham Lincoln.
Classification II:
As Remote Cause
and Proximate Cause:
A >>>> B >>>
C >> D > E
Determining
contractual
responsibility is
always a matter
of establishing
the facts and
fitting them to
established rules
of conduct.
ADVANTAGES
of
Arbitration
over
Litigation:
LITIGATE ?? or ARBITRATE ??
THANK YOU
FOR YOUR ATTENTION
See you in Court?
Hopefully not
NOTICE:
For other Construction and Contract Management
seminars and CEO/COO lectures, please contact the
Construction Manpower and Development
Foundation (CMDF) c/o Ms. Jeanette Sanchez.
THANK YOU