Mediation; A Solution To Construction Disputes

Effective conflict resolution techniques are an important need for the construction industry, where construction projects take a long time and conflicts may arise at any point, ready to destroy the relationships that parties have created over many years of working together.

An effective methodology is a requirement of the industry in order to protect the relationships between parties to maintain their potential future relationships.

Mediation is an important construction dispute resolution technique that most parties opt for, not only because of the saving of costs and times that other techniques like arbitration and mediation may incur, but it is also an important form of conflict resolution because it allows problems to be sorted out while the project is underway.

Owing to the demands of the industry for peaceful negotiations and settlements, of disputes, construction claims consultants Dubai offer their expertise in mediation and other relevant conflict resolution techniques.

The Basics Of Mediation For Construction Disputes

The conflicting parties work with a mediator in private, to settle a construction dispute that the parties may be facing. The mediator is an unbiased, trained and experienced individual who does not have any personal interest associated with the result of the dispute.

It is important to note here that although the mediator has the training and the knowledge that allow him to work out a decision for the conflict, however, the parties can ignore or accept the decision taken.

This remains an important aspect of mediations that tends to distinguish it from arbitrations and litigations where parties are expected to follow the decision of the arbitrator or litigator.

How It Happens?

Pre Mediation Meets Up

The first thing to do when mediating is for the conflicting parties to select a mediator, once the mediator has been agreed upon, he is selected, and a meeting termed “pre-mediation conference” is organised and attended by the mediator himself and the representatives of both parties.

Once the parties have met, the mediator and the two parties arrive on a unanimous decision for the date of the mediation meeting. The mediator also informs the parties about the attendees of the meeting.

Mediation Meetings

At the start of a mediation session, the mediator introduces the two parties and their representatives and highlights important aspects such as the reason for joint sessions and private meetings and the confidential nature of the whole process. Discussions relevant to private meetings are forbidden in an attempt to

The next step involves a presentation by both parts for the mediator and the other party. The presentations are made by the counsels of both parties, and it isn’t unusual for parties to include an additional presentation other than that made by the counsel.

Since mediations are about solving conflicts, it is quite usual for parties to express their anger in the presence of the mediator and the conflicting entity. Depending upon the intensity of the hostile encounter, the mediator may adjourn the meet up and call for private sessions with both parties. Since mediations are focused on solving conflicts between the disputing parties, mediators trying different strategies to settle the dispute are a common sight of the process.

Once the joint session is adjourned the mediator will have private discussions with each party, the private discussions are mainly to exchange any proposals that the other party has provided. Moving back and forth between the two parties, the mediator can narrow down the differences in proposals until the dispute is settled.

While most mediators believe that the initial dialogue between parties is important some mediators may jump straight to private sessions, holding joint sessions only when the settlement is coming to a close.

Choosing The Right Mediator Is Key For A Sound Mediation

Since construction is a multi-faceted industry, it is important to understand its different faces and also to understand the dependence of one aspect on another. A person cannot be taught how the construction industry works in order for them to come up with an effective decision for the mediation.

Multiple years of experience within the construction industry is an ideal requirement for an effective mediation process and decision. Expert construction claims consultants Dubai have multiple years of experience within the industry and can provide you with sound advice regarding any disputes that you might be facing!

Arbitration Vs Mediation – How Are They Different?

When two parties are working regardless of the time, experience and industry conflicts have to occur. But one thing that comes with the conflict is the solution and how it makes the whole thing complicated.

Being in the construction industry, there are several reasons which can result in conflict. It can be from the owners’ side or from the side of the contractors.

Different ways can be opted to solve the issues, and two primary ways to do are arbitrations and mediations.

These might sound like really technical terms, but they are just big or fancy name used for the conflict resolution expert.

If you are facing the threat of dispute while dealing the capital project in UAE. You must not waste time searching for shortcuts. It is imperative to get assistance from construction claims consultant Dubai for effective resolution of the conflicts. It will not only enable you to avoid further complication but also helps in staying away from arbitration related matters.

Arbitration vs Mediation

Let’s just dig in to differentiate arbitration vs mediation, keeping in mind the construction industry in Dubai.

Arbitration

It is not related to physics or technology, but it is a process of putting the conflict in front of a neutral third party for the purpose of resolution.

Any expert who will be listening to both parties and making a decision will be known as an arbitrator. He or she is basically just a witness or hearer for the most part.

The process in this works like court case because both sides will state their arguments, provides the testimony and listens to the other side of the story. The only difference is that it is not as formal as it is in court cases.

In the case of the construction industry, both the contractor and owner will approach a third party who is neutral and give their arguments with solid proofs. The third party will hear both sides, analyze what exactly went wrong and gave the decision. The decision can be in anyone’s favor, but both parties have to agree on the decision of the arbitrator.

Mediation

It is the settlement of the dispute with an expert third party. As the name suggests, the mediator is going to work as a common point for discussion regarding the conflict between both parties.

The role of the mediator is not to give any decision but to just bring two parties together for a discussion. The purpose of the discussion is to clear any misunderstanding, come up with the standard solution which is kind of win-win situation for both sides.

The mediator will also have a separate discussion with each party where they will share their options and opinions on the current conflict resulting in peaceful resolution.

There are different ways this approach can be like the parties can meet first along with the mediator or mediator can have the individual meetings with each party first and then have a combines session.

All in All

If you have been stuck in the complications of arbitration vs mediation, it is suggested to get help from experienced construction claims consults. Why? It’s because laws of UAE regarding the construction-related matter are very severe. So, any mistake in dealing the disagreement or dispute can lead you to legal proceedings.

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Worth Reading

Essential Considerations To Hire An Expert Witness

Types of Construction Claims & Avoidance Solutions

Cost-Over Run In The Construction Industry: Common Causes And Its Prevention

Cost over-runs are very widespread in construction projects in the United Arab Emirates so that they are almost becoming a norm in the construction industry.

But that should not be the case. Even as construction projects are unpredictable, it is still possible to create a more accurate budget and take essential steps to ensure that the plans do not exceed the allocated cost.

In order to find out how to reduce cost overruns in your projects, it is essential to understand the cause. Most of the times, these overruns are the result of broader issues in project management and improper budgeting and scheduling at the inception of the project.

But, if unforeseen disputes arise, you can save your construction project from costly litigation by seeking help from construction claims consultants Dubai.

To keep overruns at the least here we have highlighted some of the most common cost overruns in construction projects and also provided ways using which you can ensure your project to be within budget:

Faulty Estimates

While you and your stakeholders must be eager to start the project as soon as possible, still you need to give some time and consideration to make the final schedule and budget.

Moreover due to the competitive bidding process, your project estimates may suffer.

How To Avoid It?

This problem can be avoided when major project stakeholders get together and identify potential obstacles that can cause cost overrun or disputes in the later stages of the project. It is likely to minimize the number of change requests and the costs associated with them.

Project Design Errors

Even if you have allocated proper time and resources on accurate budgeting and scheduling, if your design plans are faulty, i.e. poorly designed, inaccurate or incomplete, your projects are likely to suffer from cost overrun.

How To Avoid It?

Fortunately, such issues can be avoided entirely in many situations. In the design phase you can use construction software that ensures the minimization of errors.

And if the project schedule or scope is unexpectedly changed, it is easier to adjust these changes into a digital model.

But still, if your project goes towards costly litigation process, construction claims consultants Dubai are your best ally. These professionals accurately identify the flaws in your project design and provide you with quality advice on construction claims.

Administration Related Errors

Even after everything is going well according to the plan, your project may suffer if your project administrators are not keeping with your pace.

And even small errors on their part can bring catastrophic results to your project.

How To Avoid?

Such problems can be resolved quickly with a software system that ensures the accuracy of all documents. Moreover, it will give administrators the full visibility into the construction project

And keep operations and logistics run smoothly.

KEY NOTE!

Reducing cost overruns in the construction project must be your top priority since the start of the venture. So, you should take the time to properly plan on the areas that can cause your project to cost more than the estimated amount.

But as the cost overruns are an inevitable aspect of construction projects in the UAE, because there are a lot of factors which you cannot control, therefore, in case of disputes between stakeholders it is recommendable to take help from professional construction claims consultants Dubai.

They will assist you in preparing and analyzing disputes that can come along your way.

Essential Considerations To Hire An Expert Witness

Constructions projects require the active participation of many individuals to ensure success. It is necessary because the project should be completed in time without any dispute. Therefore, professional witness experts are sought with the hope to keep the projects aligned with the deadlines.

There are many ways to search the suitable expert for construction projects witness. You can ask from the professional companies to provide their services entirely or partially. You can also get help from the internet.

However, there are various factors you should consider before formally getting into a contract with the witness professional.  Before moving further, let’s understand who a construction expert is?

Who is a Construction Expert Witness?

Any individual having an extensive knowledge of construction related matters can adopt the profession of witness expert. The expertise may include the processes, policies, management of projects and construction laws.

Construction witness can be required at any time during the project completion. For instance, a delay expert can help you to measure all related details which can cause potential barriers to the successful accomplishment of the project.

Further, you can also get an estimation of the reason which caused the project to get delayed. Not only this, possible ways can be figured out to estimate solutions to the problems faced by the construction managers.

Tips To Hire A Professional Expert Witness For Construction Projects

The process of building essentially involves various tasks starting from bidding to completion certificates. Therefore, it is imperative to have assistance from external project experts to ensure a smooth transition from one step to the other.

Here are the things you must consider while hiring the expert for your capital project:

Have A Detailed Interview With The Expert

It is essential to get every detail from the expert related to his expertise and services. The better way is to conduct an in-depth interview with him. However, it is not in the best interest to meet every expert and discussion with him all the detail. So, you should shortlist a few experts and schedule an interview with them.

Ask The Questions Related To Get More Information

Further, assume that the expert has not any conflicting interests. Ask the given questions to get adequate information about his expertise:

• For how many years, the expert is working in the respective field?
• How many projects are completed by the expert so far?
• How many cases, the expert have witnessed in the court?
• How many times was the analysis of the expert deposed?
• Ever the expert was disqualified?

Does The Opposing Expert’s Stance, The Expert Preserve Analysis Or Reports?

After analyzing the potential of the expert, explain your case with him in order to establish a trust level between both parties. Consider the advice given by the expert. Perform this activity with the shortlisted candidates, and at the end, you will be able to select the most suitable delay expert on your construction project.

Hire the Expert

Once you have done with a detailed discussion with a number of experts, you will get a comprehensive overview of their skills. Based on the analysis, you should hire the expert having adequate skills set to deal your project successfully.

Remember! The selection of the right expert is crucial for the success of your case. It is because only an expert can understand legal matters from the perspective of construction conflicts.

Types of Construction Claims & Avoidance Solutions

The industry of construction involves numerous task and activities. The projects are completed mutually by contracts and agreements.  Sometimes, disputes arise over the projects owing to disagreement and delay in completion.  So, the clients and contractors make claims.

Arbitrators and the court resolve the matters. In both cases, it is essential to get assistance from construction claims consultants Dubai. If you are facing the same issue but are confident to prove your claim strongly, you may be wrong. It is because construction matters are intricate and therefore, expert opinion can help you to get an edge over the opponent.

It goes without doubt that construction disputes are impossible to avoid but don’t make claims in hassle. The right way is to prevent conflicts as much as possible but when an issue occurs, never relay merely on opinions but get experts’ advice.

CONSTRUCTION CLAIMS IN THE UNITED ARAB EMIRATES

Construction projects require careful analysis and diligence to be accomplished as per the contractual promises. However, any dispute can lead the project owner and contractors towards construction claims.  Many project participants consider it the most unpleasant and disruptive events in the construction sector.

It has been observed that constructions projects are facing more challenges as compared to the past. It is owing to the reason that augmented competition has compelled the project managers to bid with lowers profit margins which cause havoc in the later stages.

Not only this, the multiparty nature of construction projects is making the process more complicated and risky. It has given the contractors more responsibilities to deal with increasingly sophisticated projects.

The Construction Industry in the United Arab Emirates

United Arab Emirates (UAE) is a glaring example of highly intricate infrastructural developments. The advancement in the construction industry is phenomenal on the part of federal and local levels. However, construction disputes may arise owing to any reason which makes the presence of construction claims consultants Dubai essential in resolving the disputes peacefully.

It is the proactive approach of the contractors and project owners that UAE has emerged as the modern country from the sterile desert. It is evident from the fact that houses, hospitals, schools, shopping centers, electricity, telecommunications, and water systems along with all luxury facilities.

However, construction is considered the scrappiest industry unlike other industries such as manufacturing or business operations. It is owing to the involvement of many contractors, brokers, and subcontractors.

The gigantic size of the industry has made it higher vulnerable to construction claims. However, in UAE, construction claims are as the direct outcome of massive growth in the industry, particularly in Dubai.

Construction Claims

The simplest terms, construction claims are referred to the request for potential compensation for the loss incurred by one party either the project owner or contractor.  It is a common practice in the field of construction because there can be several reasons which lead the projects towards delay in completion or other related incidents.

However, the claims are made for damages costs or to get additional investments as well as extension in time. So, to get an edge over the opponent and to increase the success chances, the contractors should understand the primary reasons for claims.

In this way, comprehensive understanding of the claims made in any construction project enables the individuals to defend their stance with proper evidence.  The construction claims experts in Dubai suggest that project contractors and owners need to follow the formal procedure of tracking, executing and managing projects step-by-step in order to mitigate the conflicts.

Claims Resolving Methods

Nevertheless, if a claim is raised and submitted to the court or arbitrator, both parties should seek an agreement which is in the better interest of contractors and owners as the peaceful resolution. Therefore, setting and resolving the claims is primarily based on negotiation, arbitration, mediation, and litigation.

However, it is critical to go through primary and secondary reasons which contributed to a dispute among the shareholders. For instance, if a delay occurs in a construction project, the first and foremost thing is to analyze all situations which can hinder the project execution.

After doing so, it is better to present all risks and possible management strategy to eliminate the chances of delays in completion of the projects. Therefore, determining the time span, impact and contributing factors should be documented comprehensively.

Ways to Resolve Construction Claims

The cost of litigation and arbitration is increasing along with the complexities of construction matters. Therefore, it is imperative for the construction contractors and clients to safeguard their stance rigorously in order to save themselves from high losses.

Further, the legal system of UAE is highly rigid in terms of punishments. There are strict rules to be followed to ensure success in any matter which involves legal factors.  It has given considerable significance to construction claims consultants in Dubai.

So, a few recommendations are given to assist you in getting through the claims issues successfully:

• Take proper time to design a comprehensive plan for the construction project. If you are a contractor, you need to have a well-coordinated team to execute the project.
• Write down each and everything and maintain records of payments, bills, materials, construction designs, specifications, risk factors and other things.
• Establish comprehensive quality control methods to ensure efficient processing of all operations.
• Read the contract on a regular basis to ensure proper understanding and trust building.

All You Need To Know About Quantum Experts And How They Work

The construction projects have become even more significant and broader within the last few decades. The more people are getting involved in the industry, and the construction projects are becoming complicated because of changing needs and demands.

But there are several factors which can put construction projects on hold such as scarcity of the labor, prices, or even the additional amendments. This can lead to a dispute between the contractor and the owner. This leads to construction claims because of unprofessional attitude and work performance of any of the part.

The claims can be monetary or additional type depending on the factors which have influenced the project. Quantum expert is the expert consultancy which provides service of protecting the rights of the clients in the construction and engineering sectors.

Quantum experts are the professionals who provide the sound knowledge about construction projects and can expertly advise the construction projects or provide a neutral opinion on the claim made.

With their expertise, these individuals provide information and correctly estimate the number of damages because of lack of commitment, unexpected behavior, and delay in the project. Any type of fraud and misinformation is also taken into account. The damages can be physical, financial, and in some cases even mental.

Skills A Quantum Expert Must Have

Quantum experts do not become experts overnight rather they have worked hard, shown dedication and have the right knowledge to reach the level.

People who do not have any knowledge about the construction industry and have not worked as the analyst or expert position then they might not be the right fit for the project.

These analysts will be working along with other sectors such as financial, legal, accountancy, and management of the project as well as the overall process. The experts have to multidisciplinary because they have to deal with people from all disciplines. But the ideal is that the expert must have some kind of qualification related to construction industry.

No matter how much experience, having the knowledge about the industry is absolute and based on that knowledge practical skills and experience are being built.

Quantum expert has the professionals with knowledge and skills because they have worked on extensive projects, therefore, can provide robust analysis clearly and concisely. It is necessary for the expert to know the stuff inside out.

Role Of Quantum Expert

Having the solid financial background, these experts will analyze the whole situation and discuss with certain stakeholders to explicitly estimate the defaulter party and amount of damages which needs to be paid by the party.

The experts must be knowledgeable about

• Method of assessment
• The process of evaluating the delays and issues related to the construction project
• Disruption
• Understand the monetary value of the work lost
• Various forms of contracts and dealings

Quantum expert has proven track record of developing reasoned and evidence reports. The person must be able to provide detailed advice on the matter of concern to all the concern stakeholders.

How It Works

Quantum analyst would work with the stakeholder and try to understand the whole project and also listen to both sides of the story.

After attaining the whole picture by discussing with both parties, the expert will start building up a report. The report will outlay a number of elements which involves process, work management, and other elements.

After visiting the site and also knowing the market value of specific products or services, they will estimate the overall physical damage and how much value it had. The final report will be presented to the ones who have hired the experts.

In other words, these experts provide their intelligent and reasoned advice by directing involving at every stage of resolution of the dispute which has occurred and has put the project on hold. The effective and economical resolution can resume the project without any part having a grudge.

Final Words

Quantum experts are highly experienced and knowledgeable professional who aims at providing the neutral assessment in the construction projects which are defected. The quantification of damage can also be one of the reasons for the resolution of the conflicts which are present in the project.

What Are The Delay Claims And Its Types?

According to the report of 2016, among all the construction claims, delay claims have the average value of 46 million US dollar, and the trend is increasing continuously. The report also suggested that average single dispute took 15 months or above to reconcile.

Delay claim is basically a claim which refers to the idea that a construction project was not completed with the discussed time and was due to several reasons which were not expected at the time of signing the contract. There are different common reasons cited for the delay in the construction such as changing in the design requirement, different site conditions than anticipated, weather issues, problems with the workforce, shortage of the workforce, defective equipment and lastly different instructions by the owner.

The proper analysis for the delay in your construction projects can be carried out by Delay expert who has the solid background and information to do so.

All the reason cited above can lead to an extension of the schedule by the contractor because the additional work and the work pending could not be completed within required time frame.

A complete analysis is required to understand which cause or reason can lead to delay in the project. It will also help in understanding that whether the reported delay reason will impact on the delivery of the project or not. Will the reason lead to unforeseen expenses by the project or not? Whether the delay was the result of actions of 2 or more parties who were directly involved in the construction.

There are different types of schedule delays, and this article will discuss some of the schedule delays.

Excusable Delays

Excusable delays are the type of construction delay which occurred due to unforeseen conditions, and neither the contractor nor the owner has control over it.  One of the primary examples for this is natural catastrophe such as flood, fire, earthquake or any other.

Other examples can be a strike by the labor union, error in the design documents, different site conditions, issues from the government side, and intervention of the third party.

These delay reasons cannot be controlled in any way, therefore, these are considered as excusable.

Non-Excusable Delays

This type of delay or the reasons which resulted in this delay was under the control of either owner or the contractors. The delay would have been preventable making, and one part is fully accountable for the delay.

The example of the delay can be slow performance, the contractor not being proactive during the work, unskilled labor, and delay in the mobilization or the unfair practices which led labors to strike.

Non-excusable delay can be compensated or not compensated, and that only Delay expert can tell as they have the right expertise to understand the situation.

Critical Delay

It is essential to decide whether a delay is critical or not and the critical delay is the one which impacts the project delivery date. If the delay has an impact on the critical path or effects the project critically, then it required the attention and issue need to be sorted on urgent basis.

However, if the delay does not impact the critical path, then the delay is not that significant which would need extra attention.

Compensable Delays

These are the type of delay where either the contractor or the owner has to compensate the other party for the delay. The compensation can be in the form of additional payment or the time extension and in some cases both.

Also, it is important to note that compensable delay will include the non-excusable delay causes to claim for the delay.

Delay expert offers the services of delay analysis and dispute analysis as the team of experts can advise for the project management.

Concurrent Delays

There can be issues when two or more parties are at fault and led to the delay in the construction project then at that time concurrent delay can be employed. However, this is one of the complex delays to manage because it is essential to examine which party has contributed more to lead to this delay.

The delay is analyzed using the technical method to understand the underlying reasons and defaulting party.