Handling Disputes in Construction Industry: A Case Study and Policy Review

This article discusses a case study on a dispute in the construction industry due to poor workmanship and lack of communication. It also provides recommendations for policy and procedure review to handle disputes with clients, including dispute training programs, code of ethics, and personal relationships with clients. The article emphasizes the importance of resolving disputes within 3 days and documenting the solution provided. It also highlights the common principles to be used in handling disputes, such as listening, exchange of thoughts and ideas, and impartiality. The article concludes with a coaching example on how to deal with poor customer service.

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Assessment 2
1.
The nature of the dispute in this case arises from poor workmanship. The details in the contract
are not well followed and therefore the client was not satisfied with the work done by the builder.
Lack of commitment to rectify the defects on the work is able to lead to the dispute landing on
court. The builder was unable to address the defects when called upon by the client to the
satisfactory and this leads to the client filling a dispute against the builder. In addition, poor
communication is another cause of dispute in this case. The communication between the
different parties was not good enough for them to come into agreement. The different parties felt
that the other parties were arrogant and this led to the dispute landing in court.
2.
The parties in the dispute include Mr and Mrs Hayne who are the owners of the dwelling being
constructed. Their role was to get the builder and have their structure set up. In return, the parties
were to compensate the builder in this case. They were therefore the main respondent in the
dispute. The other party in this case was the applicant, who filled the dispute. The builder was
contracted by the respondent to carry out the construction of the house and be paid after
completion. The other party in this case was the arbitrator whose role was to hear the case out
and determine the action to be taken to resolve the dispute.
3
The solution provided for the arbitrator was for the builder to rectify the defects in the house.
This was to be done according to the specification named in the contract documents. The builder

was meant to make the reference on the workmanship of the work to the contract documents to
make sure they meet the mentioned standards. Another solution provided by the arbitrator was
for the builder to pay the owner sum of $7,300.62. The contract was meant to run for specific
amount of time which has already elapsed. Therefore the owner should have received the house
and therefore the owner is incurring losses due to the delays caused by the builder.
4
Some of the important relevant statutory laws which are applicable in this case include the
rectification orders to the work done. This required the owner to mention any rectifications
which are unsatisfactory and the builder will be obliged to rectify them. Another statutory law is
the contractual agreement laws. This is where the builder is obligated to follow the specifications
on the contract documents. In addition, liquated damage laws are also applicable according to the
contract signed if the practical completion of the project is surpassed.
5
First, the common laws evolve on changing social dynamics and bringing understanding. This
was meant in this case since the parties were brought to a common understanding on what they
are meant to do. In addition, the common law follows the previous decisions which were made.
It’s clear that many owners have been paid by the builders in construction industry and this was a
common for the decision to follow.
Assessment 3
Part A
To the Manager

RE: policy and procedure review in handling disputes
From the analysis of the company policies and procedure, I noticed that there is a great gap on
handling the disputes raised by our clients. The following recommendations will help in reducing
the complains
1. Provision of dispute training program to our employees
2. Introduction of code of ethics for the company
3. Creating personal relationship with our clients
Thanks you
Part B
The disputes will be identified through client review to our services. After that, the company
regulations will be used to identify the issue within the dispute raised. In resolving the dispute,
the concerned party will have to be guided by company’s code of conduct document for effective
resolution. The disputes raised should be resolved within 3 days and a feedback provided to the
client of possible. Most important, the solution provided must be document and explained to
higher management.
Part C
Listening, exchange of thoughts and ideas, verbal and non-verbal communication will be
common principles to be used.
Proper interpretation of the non-verbal cues will help in understanding the mood of the clients.
For example, a client taking while throwing hand will be assumed to be angry.

Angry people will tend to talk with high tone and reacting with their hands. Team members will
be required to calm them down.
Impartiality will help to identify the reason why the dispute is arising and help to identify what
went wrong.
Team members will be required to attend training on the new policy and procedure and hep in
improving their customer service.
Part D
The manager
RE: complain raised by Mrs Smith
In relation to the above case, our client raised dispute on the wrong bricklayer being delivered to
her site. With close analysis with the contract document, I was able to find that the brickwork
was according to the contract signed. The client had signed on the contract and therefore it
means she agreed with the specification.
Thanks
During the discussion, I took the contract as the main document to refer to on the specification of
the work needed. First I confirm that the two parties were able to sign the contract meaning they
agreed on the specific details on the document. This is to help them come into a common
understanding. Then refer to the type of brickwork specified on the contract whereby the client
would agree that the work was done according to the contract.
Part E

With the developed code of ethics for the company, this will be used to resolve the poor
customer service. John will be therefore be placed on coaching on the techniques to deal with
customers according to the details in the code of ethics for the company.