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Identify the problem
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Communicate with the other party
3
Negotiate a solution
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Document the agreement
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Monitor the compliance
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Seek external help
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Here’s what else to consider
Claim disputes are common in construction projects, especially when there are changes in scope, schedule, or quality. They can cause delays, cost overruns, and legal issues if not resolved properly. Here are some steps you can take to resolve a claim dispute in a fair and efficient way.
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- Mahmoud Saber, MBA Section Head tendering mechanical engineer at KSA
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- Nikhil Parshotam Pr Eng, PMP, FAArb
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1 Identify the problem
The first step is to identify the problem that caused the claim dispute. This may involve reviewing the contract, the change orders, the invoices, the correspondence, and the evidence of the work done or not done. You should also clarify the expectations and responsibilities of each party, and the impact of the problem on the project outcomes.
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- Mahmoud Saber, MBA Section Head tendering mechanical engineer at KSA
-Identify the problem.-Identify the stackeholder.-Communicate with the stackeholder.-compare with the scope of work and project charter .-Negotiate a solution.-Document the agreement.-Monitor the compliance.-Seek external authority.
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- Ifeanyi Obi, Ph.D Founder @ ObiSoft Innovations UK | Construction Tech Innovator | Professor of Construction Technology
To resolve a claim dispute, follow these steps:1. Review the claim documentation: Carefully go through all the relevant documents, such as contracts, invoices, receipts, and any communication related to the claim. Make sure you understand the issue and the facts surrounding it.2. Contact the other party involved: Reach out to the other party involved in the dispute, either by phone, email, or letter. Clearly explain your position and any concerns you have. Keep a record of all communication with the other party.3. Gather supporting evidence: Collect any evidence that supports your claim, such as photographs, videos, or witness statements. This evidence will help strengthen your case and make your argument more compelling.
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- Collect relevant project documents.- Open communication with involved parties.- Review the claim based on contracts and regulations.- Attempt mediation and negotiation.- Seek legal advice from construction law specialists.- Consider arbitration or litigation if informal methods fail.- Strive for a settlement agreement to preserve professional relationships.
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2 Communicate with the other party
The second step is to communicate with the other party and try to understand their perspective and concerns. You should use clear, respectful, and factual language, and avoid blaming, accusing, or threatening. You should also listen actively and acknowledge their points of view. The goal is to establish a constructive dialogue and find common ground.
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- Ajay Pratap Singh baghel Sr. Manager at HO Gawar Construction ltd.
In my experience , if you are a contractor then authority will make every possible efforts to avoid and deny your claims and ground on which you are requesting to settlement.
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- Ferdinandus Sakti Jayajati Civil Engineer (Geotechnical)
Dispute in constructions is common but please back to basic we accept the work based on mutually conditions, based on my perspective is better to maintain relationships cause everything can't be measure in value of currency
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3 Negotiate a solution
The third step is to negotiate a solution that is acceptable to both parties. You should focus on the interests and needs of each party, rather than their positions or demands. You should also explore different options and alternatives, and evaluate them based on their feasibility, fairness, and benefits. You should aim for a win-win outcome that preserves the relationship and the project.
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I would ask each of the disputing parties to write down what would be their final negotiation settlement.I then ask an outside party to take the papers outside the room and deduct one from the other and bring the answer back on another bit of paper.The result is usually relatively small.I then ask the parties if they will agree to split the difference 50/50.At this stage no one knows if the result will be higher or lower than their original offer. But the resulting figure will be an equal settlement.It works.
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- Kristijan Vilibić Empowering AEC Professionals with Digital Solutions | Owner @ Mastery of Digital | Open to Collaboration 🤝 | Explore Our Free Resources 📚
Focus on mutual interests, not rigid demands. Brainstorm various solutions, weighing their practicality and fairness. Strive for win-win outcomes that safeguard relationships and project integrity. Successful negotiation turns conflict into collaboration.
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- Sabah Qureshi LL.M, BSc. Eng, BTEC, MCIArb, MCIOB Delay Analyst | Forensic Scheduler | RICS Certified Expert Witness | Chartered Construction Manager 📝 📐🏗
it is important to shift the focus from positions to interests and needs. Understanding the underlying intents of each party allows for a more effective resolution. This approach reduces conflict, fosters creative problem-solving, and encourages cooperation. By seeking a win-win outcome, where both parties benefit, disputes can be resolved amicably. Such resolutions not only address immediate needs but also preserve positive working relationships, crucial in industries like construction where collaboration is frequent. Prioritizing interests, exploring alternatives, and aiming for mutual benefit contributes to effective dispute resolution and project success.
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4 Document the agreement
The fourth step is to document the agreement that you reached with the other party. You should write down the terms and conditions of the settlement, the roles and obligations of each party, the timeline and milestones of the implementation, and the contingency plans for any potential issues. You should also sign and date the document, and keep a copy for your records.
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- Oscar Arrieta Project Manager | Maintenance Manager | Preventive Maintenance | SAP PM | RCM | Asset Management
In my experience, what is not written is not agreed. Documents are the proof of what has been said in previous negotiations. I would like to add that each one of the documents must be signed by each of the parties of the agreement. This can help solve possible controversies in the future.
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- Kristijan Vilibić Empowering AEC Professionals with Digital Solutions | Owner @ Mastery of Digital | Open to Collaboration 🤝 | Explore Our Free Resources 📚
Clearly outlining each party's roles, obligations, and timelines helps avoid future misunderstandings. Additionally, including contingency plans for potential issues ensures preparedness. Always ensure both parties sign and date the document, and keeping copies is essential for record-keeping.
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5 Monitor the compliance
The fifth step is to monitor the compliance of the agreement by both parties. You should track the progress and performance of the work, the payments and receipts, and the feedback and communication. You should also report any problems or deviations, and resolve them promptly and amicably. You should also celebrate the achievements and successes, and thank the other party for their cooperation.
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- Md Akbar Patel Data Center Civil Project Engineer
In the field of civil engineering, project success depends on compliance monitoring. We keep a careful eye on everything to make sure the work meets expectations. Keeping an eye on receipts and payments promotes financial transparency. Everyone stays in agreement when there is effective communication. Promptly recognizing and resolving concerns promotes a healthy working relationship. Recognizing accomplishments and expressing gratitude to partners strengthens teamwork. Compliance monitoring in civil engineering makes ensuring projects stay on track, which is advantageous to all stakeholders.
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- Fayas Nisar Expert in Project Control, Cost Management, Quantity Surveying, and Commercial Management
Monitor the compliance: Keep an eye on whether all parties are adhering to the agreed-upon solution. If not, you may need to take further action.
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6 Seek external help
The sixth step is to seek external help if you cannot resolve the claim dispute by yourself or with the other party. You may consider using alternative dispute resolution methods, such as mediation, arbitration, or adjudication, which involve a neutral third party who can facilitate or decide the outcome. You may also consult a lawyer or a contract specialist who can advise you on your rights and obligations, and represent you in a court or a tribunal.
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- Nikhil Parshotam Pr Eng, PMP, FAArb
If the parties are unable to resolve their issues, it is best to seek the assistance of an impartial third party. This is where arbitration is useful. An arbitrator can hear both sides of the argument, consider the context in which the dispute has arisen, and make a decision based on applicable contract documents and legislation. Arbitration offers a quicker and cheaper method to resolve a dispute than approaching the courts. Moreover, the arbitrator's award is binding (it holds legal weight and can be made an order of the court).
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- Hussain Chizari (FCIOB, MCIArb) Director at Quantum Global Solutions | CIOB Chair - Doha Hub
When seeking external help for a claims dispute:1.Assess the situation's complexity.2.Identify and research potential experts.3.Conduct an initial consultation to discuss the issue.4.Evaluate experts' credentials and experience.5.Discuss terms and costs for their services.6.Formalize the agreement in a contract or engagement letter, outlining roles and responsibilities.
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- Vincent Pallaci Attorney @ Kushnick | Pallaci PLLC | Complex Construction Claims
Consulting with counsel as early as possible is important to assure you protect and preserve your rights. Claims can be lost before they are started because the construction team did not consult legal counsel before taking action. One example is a multi-million dollar claim that I arbitrated several years ago that turned on whether a termination for convenience acted as a waiver for future claims of defective construction by the owner (in that case it did and the owner was barred from pursuing the defect claims). Not only can speaking to legal counsel early help avoid mistakes but sometimes it can make the ultimate resolution much cheaper. The legal fees to avoid the problem are often dwarfed by the legal fees to fix it in a courtroom.
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7 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Abdel Rahman Ali Elbosaty ,PMI-SP®,PMP®,CLAC,PRMG® Senior Planning Engineer at Honeywell | Project Control Specialist | Construction Planning Expert | Delay Analyst | Contract Administration
Resolving a claim dispute typically involves several steps:Contact the involved parties: Reach out to both the claimant and the party being claimed against to discuss the matter and try to resolve it through direct communication.Gather evidence: Collect any supporting documentation, records, or evidence related to the claim to substantiate your position.Mediation or negotiation: Attempt to reach a mutually agreeable solution through mediation or negotiation.Escalation: If an agreement cannot be reached, consider involving a higher authority or third-party mediator, such as an arbitrator to facilitate resolution.Legal action: As a last resort, if all other methods fail, you may need to take the matter to court Or DAB.
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- Orwa Razzaz Construction Manager I MPM
Details is the most important thing,,Both of them must be detailed more for the scope of work, specifications and variations.Start from BOQ and dive in the details before quotation & contract to determine the details of details.
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