Friday, October 14, 2011

Issues for resolution of disputes

The following matters need to be resolved in order to reduce the possibiility of future disputes occuring :

  • Clarification of responsibilities
  • Need of single-point responsibility contracts
  • Allocation of risk to the parties who are best able to control it
  • Further investigation of insurance-based alternatives
  • Need to develop and extend nonadversarial methods of disuputes resolution .
  • Partnership sourcing ( contractors and consultants working in a consortium )
  • Quality manageent and quality assurance .

Claims

It is evident from society in general that as individuals we are becoming more claims conscious  . Firms of lawyers are now touting their services , often on a no-win no-fee basis . Everyone wants their pound of flesh ans what they rightfully believe belongs to them . Claims are seen by many to be a last resort issue . Even in the construction industyr this is true , although some would want to argue that some contractors prepare their claims  alongside their tender submissions .

  Contractual claims arise where contractors assess that they are entitled to additional payment over and above that paid within the general terms and conditions of the contract .  For example , the contractors may seek reimbursement for some alleged loss that has been suffered for reasons beyond their control . On may occassions the costs incurred lie where they fall and contractors will have recourse to revocer them . Thus losses and delays arising from the intervention fall with the contractor . The fact that a loss has been sustained , without fault on the part of the loser , may merit sympathy , but does not in itself demand compensation . here a standard form of contract is used , many attempts may be made by contractors to invoke some of the compensatory provisions of the contract in order to secure further payment to cover the losses involved .

   The details of such claims will be investigated by the quantity surveyors and a report made to the architect , engineer or other lead consultant . The report should summarise the arguments involved and set out the possible financial effect of each claims . Quantity surveyors frequently end up negotiating with contractors over such issues in an attempt to solve the financial problems and to arrive at an amicable solution , whereever this is possible . This is preferable to a lengthy legal dispute .

  As with many issues in life , contractual claims are rarely the fault of one side only . If the claim cannot be resolved in this way then some form of legal proceedings may be initiated . Particular care therefore need sto be properly exercised in the conduct of the negotiations since they may have an effect upon the outcome of any subsequent legal proceedings . Claims may be classified in several different ways . THey usually reflect a loss and expense to  a contractor .



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