Amicable settlement as an effective stage in the resolution of construction disputes -

Abstract

Conflicts, disputes, and claims may be considered an inevitable consequence of the construction process. If construction conflicts are not effectively addressed and managed, they can result in claims that, in turn, might evolve into serious disputes. Project participants are becoming more concerned about claims and disputes and more aware of their costly and lengthy resolution process, which is why it is very important to properly track and manage these claims. The FIDIC conditions of contract clearly includes in several of its clauses procedures for the administration and resolution of claims. Attempting to resolve disputes through amicable settlement as opposed to arbitration or litigation can save on a lot of time and money. Both 1987 and 1999 FIDIC conditions of contract contain clauses pertaining to amicable settlement that impose the passage of a 56-day period as a condition precedent to the commencement of arbitration, however they do not prescribe any method-procedure for amicable settlement. This research aims at exploring what the 56-day period entails prior to arbitration, as well as how amicable settlement can best be managed in order to render this period effective. An analysis of disputes faced on a number of construction project case studies will highlight advantageous and disadvantageous practices that come into play while attempting to resolve claims amicably or otherwise. The offered analysis will identify an applicable procedure and mechanism of conduct that specifies the start of the amicable settlement process, regulates its length and progression, and defines the end of this time period.