Construction projects are complex, information-intensive and risky to all project participants. As a result, misunderstandings, disagreements and disputes regularly occur.

Dispute avoidance techniques anticipate these disputes and incorporate proven techniques to prevent, reduce and quickly identify dispute conditions for early resolution, preventing disputes from growing into more significant claims and litigation. Project planning and reasonable risk allocation are key elements of an effective dispute avoidance program.

Project planning includes selection of the most appropriate project delivery system (such as design/build) to achieve critical project goals. Risk allocation best practices generally transfer responsibility to the party in control of that risk or in the best position to assume financial responsibility for the risk. Owners who seek to avoid all risk through risk-avoidance contracts often increase their risk when the attempted risk transfer is unfunded or unenforceable.

Effective dispute resolution programs that emphasize early resolution and step negotiation techniques are very effective in avoiding growth of disputes into claims or litigation.

Dispute Avoidance Techniques

A well-designed dispute avoidance and early dispute resolution program will improve project teamwork, cooperation and performance.

• Partnering programs can be used to avoid disputes through improved project communication, cooperation and problem-solving. Partnering workshops are effectively implemented through regular follow up meetings or sessions.



• Dispute review boards or project neutrals are being used more frequently, due to their benefit in avoiding disputes and facilitating early resolution of disputes.



• Improved project team communications also result in avoidance of many common project disputes. To enhance communications, use multiple channels of client-project team communication to promote dispute avoidance and improve project performance efficiencies.



• Special care to define contract obligations and reach a shared understanding on obligations with all key project participants reduces misunderstandings that lead to disputes.



• Effective change management programs provide early notice of changing conditions and early review of funding and work priorities avoid many common construction disputes that often occur at project end, usually regarding cost overruns.

Disputes are of significant concern to all project participants. In addition to the easily identified dispute costs of legal counsel, claims paid and insurance premiums, disputes have additional costs not as readily identified that can cause significant loss. Disputes can destroy morale, project relationships and reputation and can also result in reduced work, costly delays or even turn a project into a disaster for all participants.

While staff generally resists new programs, the benefits of utilization of dispute avoidance programs are undeniable. Please contact us for additional information on implementing a dispute avoidance program utilizing these new project management practices.