Strategies to Prevent Construction Contract Disputes - Chapter 2 - AAA Handbook on Construction Arbitration and ADR - 2nd Edition

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CHAPTER 2
STRATEGIES TO PREVENT CONSTRUCTION
CONTRACT DISPUTES
Luc Picard*

I. Introduction

The amount of money spent on resolving disputes can make the
difference between a profitable project and a losing one. Certainly much
of that money could be saved if the number of disputes were reduced,
and if those that arose were resolved through ADR. This chapter offers
suggestions to general contractors on how to take a proactive approach to
preventing contract disputes through negotiation and drafting of
construction contract documents.

II. Why Contract Disputes Arise

A well-written construction contract usually contains terms and
conditions addressing the most foreseeable situations but cannot cover all
possible issues that may arise during the life of a project. Thus, when
unforeseen problems arise, as they inevitably do, the contract may not
provide an answer.

Even when the contract addresses a particular issue, a dispute may
arise because the contract lacks clear direction on how to resolve the
matter. The contract provision may be vague or subject to different
interpretations. Issues pertaining to contract language abound on
international projects, where the parties often come from different
cultures, or have different beliefs, values, needs and education.
Translated contract documents may also produce problems since the

Table of Contents: 

 

 

Full Table of Contents from "AAA Handbook on Construction Arbitration and ADR - 2nd Edition"

TABLE OF CONTENTS

PART I:  Managing Risk and Avoiding Disputes   

        Chapter 1   
        Avoiding Disputes in the Design-Build Environment
        Michael C. Loulakis

        Chapter 2   
        Strategies to Prevent Construction Contract Disputes
        Luc Picard

        Chapter 3   
        ASA/AGC/ASC Joint Guideline on the
        Avoidance and Resolution of Construction Disputes
        ASA/AGC/ASC

        Chapter 4   
        The Key to Claims-Free Projects-Identifying and Managing Construction Project Risk
        Ava J. Abramowitz

        Chapter 5   
        Negotiating Consequential Damages Waivers
        Charles M. Sink and David K. Ismay

        Chapter 6   
        U.S. Project Disputes: Has the Time to Consider Adjudication Finally Arrived?
        Michael Evan Jaffe and Ronan J. McHugh

        Chapter 7   
        Searching for Balance in Conflict Management: The Contractor's Perspective
        Richard Fullerton

        Chapter 8   
        Resolving Public Sector Disputes: A Road of Politics and Potholes
        Richard D. Rhyne

PART II:  ADR in the Construction Industry   

        Chapter 9   
        Alternative Dispute Resolution in the Construction Industry
        James P. Groton

        Chapter 10   
        "Hybrid ADR" in the Construction Industry
        James H. Keil

        Chapter 11   
        Between the Devil and the Deep Blue Sea-
        Subcontracting and Jurisdictional Labor Disputes
        Gregory R. Begg

        Chapter 12   
        Dispute Resolution Using a Neutral Architect
        Jack Kemp
       
        Chapter 13    
        Seeing is Believing: The Importance of Site Visits in Arbitrating Construction Disputes
        Michael J. Altschuler

        Chapter 14    
        Understand ADR Procedures Before Agreeing to Them
        The American Subcontractors Association

PART III:  Mediation 
 
        Chapter 15   
        Recipe for Success in Construction Mediation
        John P. Madden

        Chapter 16   
        Mediator Wisdom from the Experts
        James Acret

        Chapter 17   
        To Mediate or Not To Mediate: That Is the Question
        Roger J. Peters and Deborah Bovarnick Mastin

        Chapter 18   
        The Importance of Process Design to a Successful Mediation
        Paul M. Lurie

        Chapter 19   
        Some Guidelines for Effective Advocacy in Mediation
        Howard D. Venzie, Jr.

        Chapter 20   
        Closure Issues in Construction Mediation
        Howard D. Venzie, Jr.

        Chapter 21   
        Should Trial Counsel Represent the Client in Mediation?
        Robert Korn

        Chapter 22   
        The Expert's Role in Construction Mediation
        Richard Lamb

        Chapter 23   
        Construction Attorneys’ Mediation Preferences Surveyed - Is There a Gap between Supply and  Demand?
        Dean B. Thomson

        Chapter 24   
        Innovations in Mediation andTechnical Mediation-
        A New Tool for Resolving Complex Construction Disputes
        Robert S. Peckar

        Chapter 25   
        Mediating Construction Disputes- What Works and What Doesn't
        Richard P. Flake and Susan G. Perin

PART IV:  Partnering
   
        Chapter 26   
        I Don't Trust You, But Why Don't You Trust Me?
        Recognizing the Fragility of Trust and Its Importance in the Partnering Process
        Jeffrey S. Busch and Nicole Hantusch

        Chapter 27   
        The Benefits of Partnering
        James H. Keil

        Chapter 28   
        Partnering and the Management of Construction Disputes
        Steve Pinnell

        Chapter 29   
        Practical Tips for Effective Partnering
        Bruce Johnsen

        Chapter 30   
        Team Players-Not Partners!
        "Partnering" Does Not Create "Partners"
        Robert S. Peckar

        Chapter 31   
        The Truth about Partnering-Limitations and Solutions
        Allen L. Overcash

        Chapter 32   
        Creating Long-Term Success Through Expanded "Partnering"
        Gerald S. Clay, Ann L. MacNaughton and John F. Farnan Jr.

PART V:  Arbitration
   
        Chapter 33   
        Tips on Advocacy in Arbitration Before an Industry Arbitrator
        Jorge R. Cibran

        Chapter 34
        The ABCs of Writing a "Reasoned Award"
        James R. Holbrook

        Chapter 35
        Innovations in Arbitration:
        Improving the Presentation of Evidence in Construction Arbitration
        Robert J. MacPherson, Richard F. Smith and Roy S. Mitchell

        Chapter 36
        Returning Arbitration to an Effective Process in Construction Contracts
        William R. Joyce

        Chapter 37
        Comparing Cost in Construction Arbitration & Litigation
        Susan Zuckerman

        Chapter 38   
        Conditional Arbitration: A New Approach to Construction Arbitration
        Steven A. Arbittier

        Chapter 39   
        Stick With the AAA Arbitration Clause: The Best Chance for a Fair Resolution that Saves Time and Money
        Ed Gluklick

        Chapter 40
        Neutral Corner-The Duty to Disclose
        Neil Carmichael

        Chapter 41
        Arbitration vs. Litigation: An Unintentional Experiment
        Jeffrey Cruz
   
PART VI: Small Claims Management  
 
        Chapter 42
        Claims Management:
        Using a Damages Accounting Form
        Anthony E. Battelle

        Chapter 43
        Termination Cases
        Anthony E. Battelle

PART VII:  Large and Complex Case Management  

        Chapter 44
        Now Is the Time to Control the Big Case
        Allen L. Overcash

        Chapter 45
        Choosing the Right Mediator for a Complex Construction Dispute
        Joseph C. Malpasuto

        Chapter 46
        Case Management under Revised Rules L-4, L-5 and L-6
        Anthony E. Battelle

        Chapter 47
        Effective Mediation Techniques in Complex
        Multiparty Synthetic Stucco Cases
        C. Allen Gibson, Jr.

        Chapter 48
        Large, Complex Construction Disputes: The Dynamics of Multi-Party Mediation
        Albert Bates, Jr. and L. Tyrone Holt

PART VIII:  Dispute Resolution Boards   

        Chapter 49
        A New Look at DRBs-AAA Offers New DRB
        Roster and Protocol
        Robert J. Smith and Robert A. Rubin

        Chapter 50   
        Dispute Review Boards: Resolving Construction Disputes in Real Time
        Robert J. Smith

        Chapter 51 
        For Better or Worse:
        The AIA Introduces the Initial Decision Maker in its Dispute Resolution Provisions
        Steven B. Lesser and Belinda A. Bacon

        Chapter 52
        Construction Conflicts and Dispute Review Boards:
        Attitudes and Opinions of Construction Industry Members
        Kathleen M. J. Harmon

        Chapter 53
        Managing Dispute Resolution Options in the Construction Industry
        Roundtable Discussion

        Chapter 54
        Comparing Dispute Review Boards and Adjudication
        James P. Groton, Robert A. Rubin and Bettina Quintas

 

 

Author Detail: 
Luc Picard is a senior contract claims manager under contract to a Fortune 500 company in the power generation industry. He is a member of the Ordre des Ingenieurs du Quebec.