How to Avoid Construction Disputes

Learning how to avoid construction disputes is important to real property owners, AEs, builders, and building users.

While the construction sector is notorious for its low productivity and waste,  any facilities management team can consistently deliver project on-demand, on-time, on-budget, and to the satisfaction of all participants and stakeholders.   This can be done through the deployment of LEAN collaborative construction delivery methodology.

The best defense to avoiding construction issues and disputes is to conduct significant upfront planning before the project starts and assure early and ongoing collaboration within a common data environment, including full financial transparency.

With the appropriate display of leadership and competency, any real property  owner and significantly improve the speed and quality of renovation, repair, maintenance, and new construction projects.

The following  will help building owners and service providers jointly minimize risks and avoid project disputes.

(1) LEAN Construction Delivery Contract and Operations Manual/Execution Guide It is imperative to acknowledge that the construction delivery methods dictates ultimate program and project success or failure more so than any other single element. It is the construction delivery method that sets the tone, defines roles and responsibilities, defines requisite processes and details final deliverables.   Lean construction delivery methods assure that all parties (owners, builders, AEs, building users, …) know and understand their contract / subcontract and the associate project before it is executed and before a project starts.  A written Operations Manual/Execution Guide is part of the contract and details process stages, approvals, required information formats, reporting, etc.  In short, LEAN construction delivery is focused upon best value for the owner and all participants while putting in place capabilities for internal and external teams to be responsible for and play a role in increasing value on an ongoing basis.  Each term member is both accountable and a key resource, bringing their unique knowledge, skill sets, and capabilities into the support of value optimization.

(2) Common Data Environment:  A locally researched detailed unit price book, UPB, using common terms and definition, and organized using CSI MasterFormat 50 Division, is key to assuring mutual understanding of work scope and financial visibility/transparency.

(3) Document project needs/stages/issues/information in real-time:  Nothing is more important to avoiding construction disputes than preparing solid, detailed, and contemporaneous documentation during the project.   This is greatly aided by a cloud-based program/project/estimate/document management systems.   All parties have appropriate access to the  information they need.  Furthermore, a full document management system assures that everyone is working on the same and current version of information.   Documents are checked-in and checked-out, just like a library, and only persons with appropriate permissions can edit them.

(4) Shared Risk/Reward, Mutual Trust/Respect, Long-term Relationships:  When a problem comes up on a project, deal with it head-on, and do so in an open, shared, manner without assigning blame.   Seek solutions from appropriate team members. Document and learn from the mistakes and adjust procedures appropriately.   This is what collaborative and continuous improvement… and LEAN… is all about.

(5) Require Initial and Ongoing Training.  Require Collaboration.  Use all the tools and services at your disposal.   All participants must be required to attend initial and ongoing training.  Collaboration mus be required of all participants.   And lastly, all the tools, training, and services to assure consistent success are readily at your disposal.  Use them!

How to Avoid Construction Disputes

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