Proper Project Deﬁnition to avoid disputes · Lloyd QC: Royal Brampton Hospital vs Hammond 7...

©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Welcome !

®


Proper Project Definition

to avoid disputes

Uwe Putlitz

Pr Arch 2444-1976 and Pr CPM D434-2005, AA(SA) 173Chief Executive Officer:

The Joint Building Contracts Committee® NPC

2©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Who is the JBCC?Concept of ‘dispute avoidance’Project initiation Design & SpecificationProcurement ExecutionCompletionPaymentClaimsNon performanceDispute resolution

Agenda

3


Formalised in 1997 - now with 10 constituents: ★ Association of Construction Project Managers★ Association of SA Quantity Surveyors★ Institute of Landscape Architecture in SA★ Master Builders South Africa★ Consulting Engineers South Africa★ SA Black Technical Allied Careers Organization★ SA Institute of Architects★ SA Property Owners Association★ Specialist Engineering Contractors Committee✴Audited in terms of the International Financial Reporting Standard

for Small + Medium sized Entities

Who is the JBCC ?


Who is the JBCC ?

5

Office: CEO Uwe Putlitz, Administrator Allison Kuhn + Sylvia MolefeBoard: Jacques Jacobs, Larry Feinberg, Godfrey Ramalisa, Roy Mnisi, Paul Kgole, Krynauw Nel, Kumarsen Thamburan, Barney Richardson, Stan Segal (Chair), Uwe Putlitz - ex officioExecutive: Larry Feinberg, Godfrey Ramalisa, Roy Mnisi, Kumarsen Thamburan, Stan Segal (chair), Uwe Putlitz - ex officioTechnical Committee: ACPM – Jacques Jacobs, Jorge Patricio, ASAQS - Prof Tinus Maritz, Prof Ronnie Schloss, CESA Craig Clarke, Michele Rivarola, MBSA - Danie de Villiers, Craig Bain, Jim Garner; AAAMSA + SECC: Hans Schefferlie, SARACCA Barney Richardson, ECA(SA) Lucas Bowles, Calli Pieterse; SABTACO Paul Kgole; SAIA - Simmy Peerutin, Krynauw Nel, SAPOA - Kumarsen Thamburan and NDPW - Gerard Damstra, Stan Segal (Chair), Uwe Putlitz– ex officio,

Acknowledgement of advice and guidance: Association of Arbitrators (Southern Africa), Attorneys Bowmans, Clyde &Co, Frese Moll, Pinsent Masons, RICS + Webber Wentzel


Objective …“To compile contract documentation with an equitable distribution of contractual risk in the building industry”

JBCC® is a registered trademark

JBCC® documentation is copyright protected

JBCC® documents are used in SADC countries + throughout Africa

The 2014 suite of JBCC® documents has been approved by the Construction Industry Development Board - for use by local, provincial and national Organs of State in South Africa [No. 38960 Government Gazette, 10 July 2015 Board Notice 136 of 2015]

JBCC mission

6


Standard forms may be cumbersome, “one size fits all” ! Standard forms a “compromise”

Not bought at a stationer’s shop ! Drafted by delegates representing 10 industry constituents To suit the (traditional) building industry … With an equitable distribution of quantified contractual risks:- … provided no unilateral changes are made to the documents … reduce ‘risks’ to parties … and increase productivity

Lloyd QC: Royal Brampton Hospital vs Hammond 7 others … 2001 “A standard form is supposed to be just that. It loses value if those using it, or at tender stage those intending to use it, have to look outside it for deviations to the standard”

JBCC document suite


Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - —Contract Building Contract - Building Contract - Building Contract - Building Contract – Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract – Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Contract - Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Contract - Contract Contract - Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Building Contract - Building Building Contract - Building Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Building Contract - Building Contract Building Contract - Building Contract - Building

© The Joint Building Contracts Committee®- Principal Building Agreement & N/S Subcontract Agreement, Edition 6.1 - 2014

The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

JBCC® offers a free query service related to the

appropriate application

of the JBCC® suite of documents

Generic questions and answers are posted on the JBCC® website –

see if your query has not been dealt with already … www.jbcc.co.za

Email unique queries to [email protected]

Frequently asked questions

?About 1000 queries per year

PaymentDelaysQualityScope

Termina5on


Dispute avoidance .?.?.?©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Dispute avoidance 1

11

Scope - inadequate project definition

Documentation - complete / appropriate for the task / on time

Time for design and statutory approvals

Procurement process appropriate for the task / employer

Payment - late / unauthorised deductions

Extension of time - due to the employer = scope / changes

Quality - not specified / not achieved

Poor contract administration

Termination when things go wrong


Dispute avoidance 2

12

Late appointment of additional professional consultants

Reduced professional fees - where agents need to do more work

- for less money = professional suicide!

Appointing ‘lowest tenderer’, termination for ‘non performance’

Insufficient funds where the construction period is extended

Use of ‘new’ materials and/or novel construction techniques ?

Refer to international / national standards - don’t invent your

own!

Quality management system appropriate for the project

Personality clashes and competence issues


EC Harris (Russel Gates): Effective Project Management Enables Better Service Outcomes

Less successful projects … ?

13

“Good project management will not necessarily deliver a good project - but the lack of it can pretty much guarantee failure”

Most projects fail for the same reasons: Project objectives not aligned with the business strategy

A lack of clarity around the objectives of the project

An understated or unrealistic budget and timescale

A project management structure that stifles decision making

Inexperienced or a general lack of resource to manage the project

A lack of engagement with the key stakeholders

©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC® 14

Most projects fail for the same reasons:

26% Interpersonal relationships

21% Technical problems

18% Government

14% External factors / stakeholder involvement

12% Contract and procurement

9% Project Management McKinsey: (52) A risk management approach to successful infrastructure projects



JBCC FAQ experience:

Small practices - insufficient ‘detail’ in construction information

Small practices - insufficient checking of construction information

Banks: 4 eyes principle!

Limited knowledge of project execution procedures

Limited knowledge of the (JBCC) contracts and standard forms

Changes to standard documentation - agreements, guarantees…



0 Initiation 1 Inception 2 Concept


PROBLEMSITUATION

Problemstructuring

POLICYPROBLEM

RIGHTPROBLEM

?

Problemsolving

POLICYSOLUTION

RIGHTSOLUTION

?

Problemunsolving

Problemresolving

Problemdissolving

Problemsensing

No

yeso

Noyeso

Source:WilliamNDunn“Methodsofthesecondtype:CopingwiththeWildernessofConventionalPolicyAnalysis,PolicyStudiesReview7No4(1988)720--37



National Treasury: Focus on National Standard for Infrastructure Procurement and Delivery Management-SAICE 2016 p15

Project Initiation / Inception


Value of project definition, Bas & Mayhew, 1994Guide to Successful Project and Asset Delivery (ACIF) 2015 p9



3 DES DEV 4 PROCURE2 CONCEPT1INCEPTION 5 CONSTRUCT 6 CLOSE OUT

Need / Scope

Timing

MoneySkills

Communications

Contract format

Authority

Complete DocsQA GuidanceCorrective action�Quality=crisis!

Communications “Current” docs

Changes??

GuaranteesInsurance

SuspensionTermination

Dispute Res 5

DLP/ LDLP

Consumer Protection Act

E interferes >�

No paymentNo insurance No Agent

Late information

No H&S >Suspension

No site

Authority > CI

No performancePoor Quality

Construct Mgt?Negotiate / Open tender/ Design + Build /

Stakeholders

Comply Stat’ySpecifications / Details: Refine, refer to ‘Standards’

Design: evaluate option / refine / optimise solutions

Risks: Environmental / Technology …

Risks: Business / Financial / Political …Quality

Location / “Site”

Enabling works

0 INITIATION

Comply Stds

21

Risk: EXIT Strategy ?

Project Implementation


Project Initiation / Abortion?

Victoria falls 2015-10-12


? Project risks …©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

FINANCIAL RISKincludes delay in completion = increased costs (both often underestimated, budgets often over-optimistic!)

TECHNOLOGY RISKincludes new materials and techniques, sometimes with unintended consequences

EXECUTION RISKincludes high risk of accidents / storms / flooding / collapse / fire ..

POLITICAL RISKincludes strike and lockout - generally covered by SASRIA

BUSINESS RISK includes legislation e.g. Environment /B-BBEE / H&S Act etc

(-) Risk management

24


Project Initiation / Inception: Risks


Boardroom engineering©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Steel beam spanning over court (ice rink) collapsed just before opening on the centre

Results of the inquiry: Failure of ‘on-site’ welds = only portion of specified length/depth Engineer specified x-ray checking on site Employer’s project manager decided ‘not necessary’

Few casualties / high court case / PI insurance paid some damages

similar problems - new power stations currently under construction

Avoid site work where critical items can be manufactured under controlled conditions in a factory

27

Kolonnade shopping centre


Project implementation


3 ‘Design’ (+ Standards)©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Project conception …. > “complete” and detailed project brief

Competent design with enforceable/measurable specifications

”Open” communications within the project team (notice format) writing minutes and contract instructions administration

Early identification of potential problems > resolution

= process claims promptly – as information becomes available

Strictly follow the procedures in the agreement

Dispute avoidance 3

30


Design responsibility [7.0] <4.0> The contractor shall not be responsible for the

design of the works other than the contractor's and the subcontractor's temporary works. The contractor shall not be responsible for the coordination of design elements

Design responsibility undertaken by a subcontractor shall not devolve on the contractor. All contractual or other rights the contractor has against such subcontractor arising from any design responsibility are ceded to the employer on the date of final completion or the date of termination

The contractor shall be responsible for the timeous submission of design documentation by a selected subcontractor for acceptance by the principal agent and/or agents


International Organization forStandardizationInternational Standards for Business, Government and Society

How does ISO develop standards?An ISO standard is developed by a panel of experts, within a technical committee. Once the needfor a standard has been established, these experts meet to discuss and negotiate a draft standard.As soon as a draft has been developed it is shared with ISO’s members who are asked to commentand vote on it. If a consensus is reached the draft becomes an ISO standard, if not it goes back tothe technical committee for further edits. Click on the diagram below for further details.

Are you involved in ISO's technical work?Tools and publications to help guide the development of standards can be found in theResource area.

Every working day of the year, an average of eight technical meetings take placesomewhere in the world. Increasingly, these are being held using electronicmeans, speeding up the development of standards and cutting travel costs.

Key principles in standard development1. ISO standards respond to a need in the market

ISO does not decide when to develop a new standard, but responds to a request from industry orother stakeholders such as consumer groups. Typically, an industry sector or group communicatesthe need for a standard to its national member who then contacts ISO. Contact details for national

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DEFECT: Any aspect of the works, but not limited to materials and goods and workmanship that does not conform to the contract documents

NOTICE: Issued by either party, the principal agent and/or agents to the other party or any agents to, inter alia, record an event or on default or non compliance by the other party or any agent, to request outstanding information and/or where suspension and/or resumption of the works, or termination of the agreement is contemplated

STATUS REPORT: Compiled by the principal agent where the works is terminated, to record the state of completion of the works in a report including marked up drawings and photographs

CONTRACT MINUTES: A comprehensive set of minutes prepared by the principal agent in which all pertinent contractual information that arises at meetings is progressively recorded (MWA)

33

©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC® ©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

4 Procurement©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Tendering:- to provide competition and therefore reduce costs!Iancoucci (MJB v Defence Construction 1995) … ” a prudent owner would also consider the capability and experience of the contractor and how realistic the tender price was…”

The employer does not commit to: proceed with the project accept the highest/lowest tender accept any tender give reasons for acceptance or refusal

Preferential Procurement Policy Framework (Act 5 of 2000):- Award tenders in accordance with a system that is fair, equitable, transparent, competitive and cost effective …. competence? SANS 294 Construction Procurement Processes, Methods and Procedures

(1) Procurement - why tender?

36


John Glenn...As I hurtled through space, one thought kept crossing my mind -

every part of this rocket was supplied by the lowest bidder…

(2) Procurement - process


Dispute avoidance 4


Dispute avoidance 5

39


Value of project definition, Bas & Mayhew, 1994Guide to Successful Project and Asset Delivery (ACIF) 2015 p9


40

9Guide to Successful Project and Asset Delivery: Getting it Right Up Front June 2015

Figure 2 shows how time and resources spent early in the process of delivering an asset will benefit asset owners and end users. The fairly recent adoption of Building Information Modelling (BIM) by the construction industry encourages the early identification of opportunities to optimise asset functionality, deliver best cost outcomes, and plan for how the asset is best constructed, commissioned, and managed to deliver required services.

Figure 2 Ability to Influence Performance and or Results over Project Life

Source: Value of project definition, Bas & Mayhew, 1994

A common theme running through many of the source documents for this Guide is the proposition that the more effectively a team is integrated, the better it can perform. There is a continuum of levels of integration commonly seen within the industry, with varying levels of matching collaboration and cooperation amongst members of the project team. It is suggested that the higher the level of integration of team members at the early design stages, the greater the opportunities to gain maximum benefit from project team collaboration and cooperation.

To avoid confusion this Guide distinguishes between the process of Project Team Integration and the range of possible end states of that integration including Integrated Project Delivery or IPD. The USA construction industry has developed its thinking along similar lines, and has taken it a step further in advocating for a delivery strategy built around IPD.

This Guide stops short of advocating the creation of a full and formal IPD. It does so recognising that there are commercial, policy or legislative issues that will determine the appropriate degree of integration for a particular construction project. The more important challenge is how to increase the degree to which teams are integrated, and adopt the appropriate delivery strategy for the selected level of integration.

All project sponsors must decide how much integration or collaboration is appropriate or desired on their projects. There are straightforward approaches that can be used to enhance collaboration amongst project team members, and identify issues to be addressed to increase effective team integration.


(-) Employer’s Agents [6.0] <5.0>The employer warrants that the principal agent has full authority and obligation to act and bind the employer in terms of this agreement. The principal agent has no authority to amend this agreement (NSSA cl 5.7)

The principal agent and agents shall declare any interest or involvement in the works other than a professional interest [CD]

The employer shall not interfere with or prevent the principal agent or an agent from exercising fair and reasonable judgement when performing their obligations in terms of this agreement

Note: The principal agent may obtain ratification of an ‘unauthorised action’ from the employer after the event ‘as if authorised’McKenzie’s Law of Building and Engineering Contracts and Arbitration, 7th Edition, PA Ramsden Juta 2014


Dispute avoidance 6

42


5.1 Construction©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Setting out

Subcontractors /Direct Contractors

Instructions

Completion-Practical

Completion-Final

Pre contract decisions - design + documentation

Documentation - adequate?Accept contractor design ?Contract document changes?Variations??Contract administration ?


Dispute avoidance 7


5.2 Completion …


PA & A regularly guide the contractor and all subcontractors w r t degree of completion quality required - issueContract Instruction tocomply … mock up?also if no progress -

Contractor late - except if due to employer or force majeure = penalty{Clauses 23 and 26}

“PRACTICAL COMPLETION”

Regular guidance

PA + Agents specify intender/at site meetingscompletion+ quality

Reject if no ok!Don’t pay if not ok!

Decide when specified completion achieved issue ‘certificate' NB PI insurance!!

Defined in tender

PA inspects, issues…>List for Prac Compl

>CPC + List for Compl

Period to inspect [CD]

Cert Final Completion

PA inspects, issues…> List for Final Compl

C invite PA to inspect


Practical Completion

Programmes – regulate density of information = 2 month rolling horizon in detail, remainder flexible to suit changing circumstances

(-) Practical Completion [19] <24>

48


Dispute avoidance 8


6 Payments …©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

“PAYMENTS”

Materials on/off site?

Add / Omit work

QS = valuationPA = certificateVerify claimsCalculate CPAPCalculate interestCalculate penaltiesCalculate damagesAgree final account

Agree subcontractor final account with each subcontractor and the contractor

Subcontractor submits claim to contractor (Agents verify claim)Contractor submits claim to principal agentand/or quantity surveyorPA concurrently issues recovery statement +payment certificate to employer+contractor+ payment notification to each subcontractorContractor issues to each subcontractor a recovery statement+ payment advice

For work completed

CPAP

Expense + Loss

Penalties / Damages

Advance Payments

CERTIFIED AMOUNT

51


7 “Claims”©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

“CLAIMS”

Change specifications

Omission of work

Additional work

CONTRACTORnotice < 20 W-daysclaim < 40 W-Days-- Cause-- When/ where ?-- Prevent/Mitigate-- Entity responsible -- Compl date-- Costs-- ProgrammePRINCIPAL AGENTaward< 20 W-days

PA no award = disagreement

weathermaterials substitute damage not C’s faultnom subcontractorsstatutory complianceforce majeure

no site possessioncontract instructionsopening uplate informationlate materials, free issuelate design acceptancenom/dir contractorsinadequate descriptioncontractor suspensionOther

Non performance

“Events”

53

“PRELIMINARIES”


Assume notices etc given = potential claim = not quantified yetAssume notices etc given = actual delay and/or expenseSingle – multiple causes? > effect ?

Concurrent events ? = determine dominant causePrevention / mitigation measures taken ?... Overall impact

Identify event(s) directly impact on the scheduled completion date Identify the entity(ies) responsible for such act/omission? Identify when/where each event(s) occurred? Effect on planned practical completion date Effect on (original) critical path – on the revised programme

Float = quantum / activity – belongs to the creator / used = gone! Applies in principle to insurance + securities ‘claims’ !

Claims procedure [10.0 23.0,26.0,29.0]

54


8 Non Performance…?©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

CORE INSURANCE • CONTRACT WORKS • Transit • Off site storage • Site risks • Defects liability period • PUBLIC LIABILITY • SASRIA

SECONDARY INSURANCES • Contracting Parties Workman’s Compensation Act

Compliance • Contracting Parties Common Law Liability Compliance • Construction Equipment - All Risks Cover for Contractors

and Sub-contractors • Motor Vehicles Liability Insurance • Multi lateral Motor Vehicles Accident Fund Act no. 93 of

1989 • Balance Third/Party/Passenger Liability

FURTHER CONSIDERATIONS • Lateral Support • Marine cover for imported

equipment • Marine advanced loss of

profits

PROJECT DELAY

PROFESSIONAL INDEMNITY

(-) Insurances [10.0] <10,11&12>


Suspension & Termination

E no paymentE no insuranceE no agent(s)No pay security

No work (CI)No security

SUSPENSION 5 W-days notice+ ‘compensation’

PA no pay certificateSUSPENSION by CONTRACTOR

SUSPENSION by EMPLOYER ?

TERMINATION by EMPLOYER

TERMINATION by CONTRACTOR

E no site possessionE no paymentE no insuranceE no agent(s)No security f paymentE interfere w PA/A

TERMINATION not in breach!Notice 10 W-days =?2nd notice ’forthwith’+ status report+ CI site clear/safety+ ?Penalty+ ?Securities+ ?Insurances

PA no pay certificate

57


8 Dispute (avoidance)?©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

Litigation

Adjudicator makes determination = structured process - longer, more expensive, mostly technical in nature - dissatisfied party= pay, (bond) argue later

Not accept arbitrator’s award (outside the Agreement) formal process - 2-4 years, very expensive

Eitherpartymaygiveno5cetoresolvedisagreement-preferredop7on,no3rdparty,quick,negligiblecost

Tiered Dispute Resolution Process

Arbitration

Mediation

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Negotiation

Adjudication

Atany7me,inanyprocess-involveamediatortoassistthepar7estofindanacceptablesolu7on-quickandcheap

After notice of dissatisfaction > formal process - much longer, expensive, more interpretation of the agreement


©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC® ©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC® ©2016 The Joint Building Contracts Committee® 2014 - 6.1 Principal Building Agreement & N/S Subcontract Agreement The presenter’s views in this presentation are not necessarily those of the constituent members of the JBCC®

®

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Proper Project Deﬁnition to avoid disputes · Lloyd QC: Royal Brampton Hospital vs Hammond 7...

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