Decision making in relevance to governance mechanisms along the claims-disputes resolution timeline -

Abstract

Claims and disputes have become a certain event within construction projects. Failure to address claims and disputes results in repercussions that may harm the project participants in regards to tangible and-or intangible assets. Failure to address claims in precise leads to the evolution of simple differences in opinions to disagreements and conflicts. The FIDIC 1999 conditions of contract propose some guidelines and procedures to be adopted when claims and disputes are imminent, but it does not propose strategies in regards to the detailed governance mechanism practices and decision-making processes underlying the claims-disputes phase. This research aims to illustrate the claims-disputes timeline in accordance with FIDIC 1999 contract conditions and to explore the milestones along this timeline that require major decisions to be taken by the contractor. Organizational structures for the project participants will be proposed with an analysis on the governance mechanisms adopted by the contractor’s organization. This research will then explore the decision-making process through illustrating the committees that the contractor utilizes along the claims-disputes timeline. A rationale will then be discussed and analyzed for the choices of representations from the head office and the site office within the contractor’s organization with voting procedures being discussed as well. Recommendations will follow on how the project participants can improve their practice in order to avoid claims-disputes and realize more success in projects and along the organization’s lifetime.