According to a report, the value of construction disputes in the Middle East and Europe has increased amounting to about USD 112.5 million, whereas in regions like the US and Asia it decreased according to the same report, the amount of time required to resolve the disputes has increased too, to about 9.1 months.
Construction projects may be semi-government, fully government or private in nature. And causes of conflict in these projects of the construction industry may be numerous. The development in the UAE is an amalgamation of all three with long-standing business relationships between the parties. Dispute resolution in projects is aimed at maintaining healthy relationships between parties.
For identification and resolution, it’s essential to opt for expert construction claims consultants Dubai to handle peaceful resolution process with expertise. The disputes that arise may be due to various reasons. The article aims to highlight several mainstream reasons for dispute in semi government projects.
Conflict causes in semi govt. construction projects
Whether it’s a hundred percent private project or one that’s semi-government, disputes will arise, and it’s up to the experts to solve the conflicts in these construction projects. In a manner that focuses on the long term relationship of the parties involved. Read ahead to know more about the causes of disputes in semi government projects:
Specifications and plans
Disputes over the scope of work are the most disputed and vital areas in construction projects. These disputes usually occur because of different interpretations of project documents by owners, general contractors, and design professionals.
It usually happens when the plans/specifications are unclear or when the plans created are not according to the specifications provided. Although the owner guarantees that they're correct and a warranty reflects that too, but the owner may often shift the blame on to the contractors.
Contractors-subcontractor disputes
The contractors may suggest bidding of a particular task but fail to identify details. The subcontractor in turn bids only a small portion of work, opposing to what the contractor had in mind resulting in a dispute between the two parties.
Submittal and drawings
A dispute can result due to, either a delay in the submission of drawings by the contractors/subcontractors or due to the delayed response of the design professionals. Also, the subcontractor/contractor may provide insufficient submittals or documents, and the design professional may reject them without explanation.
Out of scope work
A dispute over order changes basically arises due to the price of the change order and whether the subcontractor will benefit from the extra time. The owner may ask for change work but then disagrees with the requested extension of time and prices. The parties continue to fight over amount and time.
Different site conditions
The owner needs to disclose all relevant information being held. In the absence of any site studies, it’s up to the owners to warrant that the construction project is feasible. For public projects, the minority approach favors the owner because it aims to use "exculpatory" clauses, to place responsibility for the conditions on the contractor.
This only happens in case the owner has committed fraud in disclosing information. The contractor should work to discover the site conditions. And in case he identifies issues with site conditions, he is entitled to more money and time.
Take Away!
Regardless of the type of construction project, semi-government, government or private, construction disputes remain a common aspect with numerous causes and numerous resolution techniques. Construction claims resolution remains a critical aspect to continue processes and to maintain longstanding business relationships between parties.
The complicated nature of construction claims and disputes calls for the involvement of the best construction claim consultants Dubai who offer expertise in the resolution of claims and placement. With the right people on your team, dispute resolution is a few steps away!