Claims, disputes, arbitration, litigation: these are dreaded procedural pitfalls that often dog construction projects large and small. Not only are they time-consuming to work through, but they’re costly, too: The National Research Council estimates that $4B to $11B is spent annually in resolving these cases in the U.S. market.
At the North American office of Rider Levett Bucknall, the approach we take to avoid or minimize the number of conflicts that end up in post-project arbitration or litigation dispute often centers on using Project Neutrals or independent Dispute Review Boards (DRB).
These individuals are trained, neutral advisors who focus solely on the project, not on any one party’s position. Part psychiatrist, part negotiator, DRBs and Project Neutrals understand, manage, and resolve conflicts caused by normal construction processes in order to avoid disputes. They work with owners, architects, contractors, and consultants to transition the industry-collective mindset from conflict to conflict resolution, and ultimately to dispute avoidance.
Here are five core practices that Project Neutrals and DRBs utilize to keep the peace, while keeping a project on-track.
1. Develop trusting relationships with each stakeholder. When trust levels are high, people tend to be less defensive and are more willing to share information to help find a mutually acceptable solution to a problem. If parties mistrust one another, they often act defensively, focusing solely on their own needs and interests. Creating a working relationship that is trust-based makes conflict management and resolution easier.
2. Play an active, integrated role in the overall project team. If you want to be prepared to handle conflicts, it’s important not to sit passively on the sidelines during the design and construction process. Connecting regularly—through meetings, emails, and phone calls—with key players from the start of a project can establish you as a familiar, concerned, and impartial presence, rather than a biased opportunist or outlier.
3. Communicate clearly. The sheer quantity of documentation and communication generated by construction projects can be massive; the quality of those documents, in terms of clarity and meaning, can be ambiguous, inflammatory, or even overwhelming. Using simple and considerate language can avoid small misunderstandings—and keep them from escalating into major conflicts.
4. Treat all parties equally and fairly. If you demonstrate competence, honesty, and respect for the project and all its stakeholders, people will be confident in your ability to protect their interests and provide fair advice, recommendations, and guidance. This empowers each party to be open to conflict resolution, secure in the knowledge that, if necessary, you can be relied upon to provide sincere and balanced feedback.
5. Serve as a resource to help stakeholders explore mutually acceptable solutions.It’s not easy to challenge the traditionally adversarial culture of the construction industry. If you present people with reasonable and effective options to the expensive, ingrained blame game that pervades the business, you’ll earn the esteem of your professional colleagues and be recognized as a leader in the field.
Employed regularly, these fundamental dispute-avoidance techniques can bring a new harmony to construction projects, resulting in streamlined schedules and enhanced bottom lines.
About the Author: John T. Jozwick, Esq., is Senior Vice President and General Counsel for Rider Levett Bucknall North America. With more than 35 years in the industry, Jozwick provides advisory services to owners, contractors, subcontractors, design professionals, sureties, and attorneys relating to construction projects and disputes. He serves clients as an expert witness, provides alternative dispute resolution services as Arbitrator or Mediator, and provides construction dispute avoidance services as a Dispute Review Board member, Project Neutral, or Independent Certifier.
Related Stories
| Aug 18, 2014
Perkins+Will expands planning practice with strategic focus on underserved U.S. communities
The broadened focus is resulting in comprehensive, long-term plans that will guide new growth in places like Buffalo, N.Y., Kingston, R.I., and Brooklyn, N.Y.
| Aug 18, 2014
SPARK’s newly unveiled mixed-use development references China's flowing hillscape
Architecture firm SPARK recently finished a design for a new development in Shenzhen. The 770,700 square-foot mixed-use structure's design mimics the hilly landscape of the site's locale.
| Aug 18, 2014
Seaside luxury: Arquitectonica, Melo Group introduce Aria on the Bay condo tower in Miami
Melo Group has launched sales for Aria on the Bay, its new 647-unit luxury condominium in Miami. The bayfront condo will overlook Margaret Pace Park, Biscayne Bay and the Miami Beach skyline.
| Aug 15, 2014
First look: RMJM’s 'jumping fish' tower design for the Chinese Riviera
The tower's fish-jumping gesture is meant to symbolize the prosperity and rapid transformation of Zhuhai, China.
| Aug 15, 2014
Periscope structure gives public toilet an unobstructed sea view
Polish architect Adam Wiercinski designs a public toilet with a periscope mechanism that gives visitors unobstructed views of the sea.
| Aug 14, 2014
Life cycle cost analysis using energy modeling
A life cycle cost analysis helps a school district decide which HVAC system to use in $198 million worth of future building projects.
| Aug 12, 2014
Vietnam's 'dragonfly in the sky' will be covered in trees, vegetation
Designed by Vietnamese design firm Vo Trong Nghia Architects, the building will be made up of stacked concrete blocks placed slightly askew to create a soft, organic form that the architects say is reminiscent of a dragonfly in the sky.
| Aug 12, 2014
Design firms invited to submit qualifications for St. Petersburg, Fla., waterfront project
The city of St. Petersburg, Fla., invites firms to submit their ideas for a new and improved pier for Florida's fifth largest city.
| Aug 11, 2014
Air Terminal Sector Giants: Morphing TSA procedures shape terminal design [2014 Giants 300 Report]
The recent evolution of airport terminals has been prompted largely by different patterns of passenger behavior in a post-9/11 world, according to BD+C's 2014 Giants 300 Report.
| Aug 11, 2014
Will Alsop's funky 'high-rise on stilts' will be built over an apartment building in London
South London's riverfront will soon be graced by one of Will Alsop's eccentric designs: a curved apartment tower on purple stilts.