Managing Construction Projects to Prevent Disputes
| Author | Wayne Clark |
| Pages | 3-23 |
3
CHAP TER 1
Managing Construction Projects
to Prevent Disputes
All parties to a construction project will have the same objective:
complete the project to a high standard, on time and within budget.
Ecient performance will minimize disputes and ensure good rela-
tionships are maintained.
Managing constr uction projects to prevent disputes is about get-
ting the job done and getting it done well.
Careful planning and good performance by all parties are pre-
requisites for the success of any construction project. By all par ties I
mean the employer, employer’s representatives, contractors, subcon-
tractors and suppliers. Planning and performa nce are essential for all
phases of a project, from the employer’s concept (or dream) through
to completion and handing over the works.
e various construction project phases we wil l discuss in this
chapter, each with a focus on dispute avoidance, are
(i) employer’s concept a nd planning,
(ii) the tender (bidding) phase,
(iii) the construct ion phase and
(iv) the employer’s taking over of the completed works.
Two other important areas of constr uction management that
are necessary to help prevent or minimize disputes are wise contract
management and managing people. We will look at managing people
later in this chapter and discu ss wise contract management in the next.
4 CONSTRUCTION DISPUTES
EMPLOYER’S CONCEPT AND PLANNING
When an employer wishes to engage in a construction project – to
build something – be it a private development or the expansion of
a country’s infrastructure, the employer will usually appoint an
architect or engineer to convert the employer’s idea, its concept, into
detailed design drawings and project documents. ese drawings
and project documents will form the basis of the contractor’s scope,
price and time for executing and completing the project works.
orough pla nning by t he employer and meticulous prepa ra-
tion of the project documents by the employer’s team (architect,
engineer, quantity surveyor, etc.) are fundamental to the success of
any construction project. It is essential for the employer to allow
its team enough time to prepare the necessary documents, ensuring
that they are well thought through and, more importantly, that they
arecomplete.
An important decision to be made by the employer early in the
initial planning st age is the type of contract to be used for its project.
A clear understanding by the employer and its team of the various
forms of contract available, and the importanc e of choosing the right
contract, can be a deciding fac tor in whether a project runs smoothly
or runs into trouble.
A few years ago, I was invited to conduct a workshop for an
employer’s board of directors on the various forms of contract it
was considering for its new project. e board members could
not agree on the allocation of risk to be borne by the contractor.
Some members advocated that the contractor should bear all t he
risks, while others were concerned how this might impact on
their limited budget. e contracts they were debating over were
three of the FIDIC 1999 suite of contracts (books): namely, the
Red Book, the Yellow Book and the Silver Book.*
* e Red Book: Conditions of Contract f or Construction. e Yellow Book: Con-
ditions of Contract for Pla nt and Design-Build. e Si lver Book: Conditions of
Contract for EPC/ Turnkey Projects.
To continue reading
Request your trial