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Note on forms of contract in construction
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Construction conflictand disputes are common between the parties involved incontract works. Conflicts may arisewhenissues are not addressed appropriately at the initial stage of contract procurement. For example; such issues would include overlooking clauses of construction risks, dissatisfaction overproject decisionsand lack of technical ability in managing contracts. Conflicts may also arise due to ineffective management in the processes of contracts, unfaithful ethics of professional people involved in the contract and the use of inappropriate contract procurement methods. In such cases, conflict of interest among the parties could abrupt to construction disputes. Disputes are unsolved issues where either parties disagrees or are dissatisfied with a decision when solving a conflict. Construction disputes are critical and often cause cost overruns in projects.Thus, many literatures have address the issue of conflict and dispute avoidance process (DAP)and recommended that a defined process should be introduced at the initial phases of contract procurement to analyses and mitigate potential issues and provide strategies to avoid conflicts and disputes. The conflict and dispute avoidance process is one of suitable approach that parties involved in the contract could invest on. Introduction The Standard Forms of Contracts can be improved to better the dispute resolution process. Despite the Standard Forms of Contracts such as ABIC MW 2008, AS400-1997, AS2124-1992 and FIDIC addressing the dispute resolution clauses to alleviate solving disputes, there are still issues that these contracts may need to be reviewed in detail to deal with the rapid changing construction technologies. Although initial attempts were made to manage ... ... middle of paper ... ...s prior it escalate to disputes. The AS 4000 – 1997 may adopt the concept NEC3 contracts of identifying risks earlier which will enhance addressed issues promptly and managed proactively in avoiding conflicts crystallizing into disputes. Conclusion Generally, identifying how conflicts arise to disputes and introducing proactive proceduresis critical for all parties involved in construction projects. Also introducing the conflict and dispute avoidance procedures in Standard Forms of Contracts could prevent disputes and avoid directly engaging an arbitrator. Comprehensive interaction and open discussions among building parties for a common objectives could avoid conflict and would also maintain the project aims on schedule without hiccups. Standard Forms of Contract should incorporate early warning system that will alleviate time delays and cost overruns in projects.
Currently, XYZ Construction Inc. receives a majority of their contracts from the state government. The purpose of this essay is to analyze and discuss ethical and social issues, along with cultural diversity when expanding
Conflicts situation can happen at any time. There are many different ways to handle conflict situations. To strengthen our skills in responding to conflicts situation we must understand the various conflict management style. The five styles of conflict management style include: Competing, Avoiding, Accommodating, Collaborating, and Compromising. The competing style is like a shark, a competitive approach to ensure only your views counts. Avoiding is like a turtle, avoiding every situation and giving up. Accommodating is like a teddy bear, working against your own goals to move forward. Collaborating is like an owl, working together with your partner to achieve both your goals. Compromising is like a fox, negotiating half your goals in order
Disputes are almost unavoidable between people when there are disagreements or misunderstandings. In the construction industry, contractual relationships could lead to dispute. To resolve disputes, construction disputes are most likely encouraged to use Alternative Dispute Resolutions such as arbitration, mediation, and mini-trials to resolve their disputes faster and keep the dispute confidential and at lower cost (Ray, 2000). The construction case presented in this paper first resorted to negotiation; however, it could not give the parties a resolution which led to a mini-trial.
Procurement in construction industry defined as the process that are used to deliver a construction projects. There are several types of procurement options that are available for the clients to choose from. In before the client to choose which procurement that suit the best for his project, it is recommend to considering of what procurement does the client wants. Mainly, there is THREE essential factors that are to be consider whether or not they need it for their procurement. These three are:
A group can only be called a team if the members are actively working together toward a common goal. A team must have the capability to set goals, make decisions, solve problems, and share responsibilities. For a team to be successful, trust must be earned between its members by being consistent and reliable (Temme & Katzel, 2005). When more than one person is working on a particular task, inconsistent views or opinions commonly arise. People come from different backgrounds and live through different life experiences therefore, even when working towards a common goal, they will not always see eye to eye. Major conflict that is not dealt with can devastate a team or organization (Make Conflict Work, 2008). In some situations, conflict can be more constructive than destructive. Recognizing the difference between conflict that is constructive to the team and conflict that is destructive to the team is important. Trying to prevent the conflict is not always the best way to manage conflict when working within a team setting. Understanding conflict, what causes it, and how to resolve conflict effectively, should consume full concentration.
Furthermore, there is good price certainty at the award of the contract because of full set information. However, there are some disadvantages to the process. First, it is very consume time in the pre-contract process due to the strategy is sequential and construction cannot be started before the completion of design. Also, the contractor is not appointed at the design stage, so the contractor and supply chain have no input into the design or planning of the project. Moreover, there are divided responsibility of design and construction, so it is easy to cause disputes in the post-contract processes.
Disputes also contribute to the inflation of future building. The $7 billion problem in Australia represents the amount of money drained from its economy annually due to payment disputes, contract disputes, and lack of transparency. (This doesn't account for the lost time or emotional unrest) This $7 billion is about 3% of all construction work in Australia. For businesses to stay afloat, this cost passes to the
Many people enjoy working or participating in a group or team, but when a group of people work together chances are that conflicts will occur. Hazleton describes conflict as the discrepancy between what is the perceived reality and what is seen as ideal (2007). “We enter into conflicts reluctantly, cautiously, angrily, nervously, confidently- and emerge from them battered, exhausted, sad, satisfied, triumphant. And still many of us underestimate or overlook the merits of conflict- the opportunity conflict offers every time it occurs” (Schilling, nd.). Conflict does not have to lead to a hostile environment or to broken relationships. Conflict if resolved effectively can lead to a positive experience for everyone involved. First, there must be an understanding of the reasons why conflicts occur. The conflict must be approached with an open mind. Using specific strategies can lead to a successful resolution for all parties involved. The Thomas-Kilmann Conflict Mode Instrument states “there are five general approaches to dealing with conflict. The five approaches are avoidance, accommodation, competition, compromise, and collaboration. Conflict resolution is situational and no one approach provides the best or right approach for all circumstances” (Thomas, 2000).
workplace include greater total resources, greater knowledge band and a greater source of ideas. However, these advantages can also bring on conflict within teams and the entire workplace. Varney (1989) reported that conflict remained the number one problem within a large company. This was after several attempts were made to train management in conflict resolutions and procedures. However, the conflict remained. The conflict possibly remains because the managers and leaders did not pay attention to the seriousness of the issue. In order to maintain an effective team, leaders and team members must know and be proactive in the conflict resolution techniques and procedures.
Scott Jardine, 2007, “Managing risk in construction projects – how to achieve a successful outcome – an article”, PricewaterhouseCoopers.
This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertaining to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contract management function. Fleming (2003) posited that there is a clear and important distinction that should be made that delineates the work of the project from the inside work of the company.
Leung, Liu and Thomas (2005) discussed conflict management in construction. The study findings suggest two types of conflicts: team and task conflict. Conflict and conflict resolution both are essential part of goal setting process and can affect the final outcome. Integration style is desirable approach for solving conflicts in conflict management. Integration style for solving conflicts means the best decisions with improved level of satisfaction of m...
This paper explores what it takes to be a construction manager and the responsibilities of being a construction manager and the skills that a construction manager should have. It also explores what good construction managers do to have success on their construction projects and the steps that a construction manager must follow to end a project and meet their deadlines at the same
that may result in a struggle for power or position. Conflict management, therefore, can be
In order of being able to analyze the sources of conflicts regarding the clothing manufacturer, I will present the Conflict Process Model according to McShane and Von Glinow. Therefore, I will first define what conflicts are, and second present the different sources of conflicts and carve out which conflicts are involved regarding to the given case. The third step is to explain two different strategies to minimize these conflicts in future. Finally, I will provide a recommendation and conclusion.