University Project: Dispute Management and Contract Implementation

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This report delves into the intricacies of dispute management and contract implementation within the construction industry, focusing on the claims of contractors for expenses and losses arising from project delays and disruptions. It explores the causes of such disputes, including failures in procurement procedures, design deficiencies, and actions by the employer. The report examines relevant contractual clauses, such as those related to time extensions and damages, and highlights the importance of practical completion and its implications for both contractors and employers. The discussion covers legal remedies, including contractual and tortious connections, and analyzes the significance of warranties in construction agreements. The report concludes by emphasizing the need for reasonable compensation for contractors facing delays and disruptions, underscoring the commercial, contractual, and financial implications of dispute resolution in construction projects.
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Running head : DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
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1DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
Introduction
The claim of the contractor for expenses and loss have an argumentative concern on
various building agreement. The claims are settled during the process of final accounting
however where there is the failure of negotiation becomes disputes with the respective parties
implement the legitimate method to decide the differences (McNamara and Sepasgozar 2018).
The claims of contractor is labelled as an appeal for additional expense reimbursement resulting
from the act of employer or employer’s representative which disrupt or delay the progress of
contractor and that which is not recuperating under the agreement. They evolve typically due to
the instruction or administrators, postponement, late information, employer's default or employer
intervention (Levin 2016).
Discussion
The claims in practice labelled findings by the respective parties as a delay which
primarily caused by employer’s team and get difficult some by shortcomings, misunderstanding
or mismanagement by sub-contractor, contractor or by both (Haapio and Siedel 2017).
Claim may evolve due to failure inefficient management of procurement procedure, for instance,
failure to make adequate planning to the project at the stage of pre-contract, delivering
insufficient data during tendering, application of the procedure of inappropriate tendering,
engaging lacking procedures of nomination and creating delay due to the deficiencies of design
team (Ashworth and Perera 2018). The conventions of public work and several conventions that
are of standard form in the application in United Kingdom that contained detailed provisions of
claims under what the sub-contractor or contractor can assert as against the supplementary party
for the expense and loss that is incurred as the consequence of disruption or delay due to
specified reasons (Akintoye, Beck and Kumaraswamy 2015). The majority of contractor alleges
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2DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
for the disruption and delay under the contractual terms there may have simultaneous liberty at
common legislation to assert damages for the infringement of contract. Cause 30 (g) of RIAI
contract deals with the extension and delays of time envisages that the contractor is authorized
for time extension where it is held that the contractor not obtained in a reasonable time the
requisite notification from Architect for which they execute specifically in written form.
The delay caused by the artist, contractors, or tradesmen who are appointed by an
employer comes within the ambit of Clause 20 of the Act where the contractor is entitled to be
indemnified by the employer against claims evolving from the engagement of specialist (El-
Adaway et al. 2018). The legislation provides that the default or any action of the organization
delays the works progress then contractor with the period of five days of working of default or
action provide written intimation to the architect on the effect (Tayeh 2018).
The protocol of disruption and delay designate disruption as distinctive from the
disturbance of delay interruption or obstruction to normal operational process of the contractor
that is resulting in inferior efficiency (Burr 2016). The delay led to the forfeiture of profit as it
prevented the contractor from receiving income as resulting directly from the default of the
employer, for instance, inability to adopt other projects due to continuation of the deferred
project (Bock, 2015). Thus it is concluded that the disruption or delay of the contractor due to the
act of employer or his representative seek reasonable compensation for incurring additional cost
(Perera, Sutrisna and Yiu 2016).
The conception of practical completion as outlined in Building Control (Amendment)
Regulations, 2014 is attained when the building is used and taken over for the purpose that is
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3DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
intended. It is the project stage where there remain only minor defects. It is significant to
determine the client possession does not create practical completion though there is coincide
between two. The certificate of practical completion is delivered when the project architect
opinion reveals that there is the completion of work and can be applied for the intended purpose
by the client in addition to that any patent defect is regarded as minor or trivial nature only
(Fuentes-Bargues, González-Cruz and González-Gaya 2017). It is suggested that the
arrangement pursues to bring into line the practical completion with building placement on the
register. The ascertained and liquidated damages provide compensation to the client in a case
where the constructor invades the date of contract completion or date of revised completion. The
client upon practical completion certificate pays to the constructor one-half amount in retaining
account and the amount which is residue is released to constructer along with the final
certification upon the expiration of the period of defect liability or manufacturing defective
goods whatsoever is later (Willar 2017). The period of defect liability initiate from agreement’s
practical completion and is designated in contractual terms. The constructors should be in place
to make arrangement of any demonstration or training or instruction that are on-site by
significant sub-contractors for clients at or before practical completion (Lupton 2019). The
practical completion labelled the conclusion of the period of construction of the project when
there is the conclusion of the project and also the employer can implement or occupy them. It is
typically labelled by practical completion the initiation of a period of maintenance or the period
of defect liability.
Thus practical completion is determined as a crucial phase in a construction project as
because it has relevant commercial, the contractual, practical and financial implication for the
contractor and the employer ( Fewings and Henjewele 2019). Furthermore, whether the project
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4DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
of construction has attained in fact, practical completion is a common foundation of disputes and
disagreement within the industry of construction. The practical completion can be designated as
completion or substantial completion in some arrangement. The client at the stage of practical
completion commences building usage (Keane and Caletka 2015). It is advised by the project
architect to the client of the conditions that are approved with local authority at the stage of
certification of fire safety in addition to that the responsibility of the client to execute the
requirement of fire safety. It is advised in written form by the client that obligation for property
insurance is shifted from constructor to client instantaneously upon the issuance of practical
completion certificate in addition to that requisite arrangement should make by the client to
result in that (Clough et al. 2015). It is required that the contractor initiate implementation of the
project and proceed with the project diligently and regularly for attaining practical completion on
or prior to the dare of completion. The contractor is necessary to intimate the employer when
there is an occurrence of practical completion. The contractor should apply requisite endeavours
to reduce or prevent delay in project development or project completion.
The contractual and tortious connection put an impact on the pre-construction decision of
construction project is that for purpose consider proper intervention to contractual law for
resolving the concerns arises during the completion of construction project it is beneficial to
replicate conception of contractual connection in between the seller and the buyer of the
residential project. The chief feature of the connection between the buyer and the constructor is
the building agreement which is considered as the foundation of remedies and rights in the
occasion of defects. The regulation of 2014 establishes no novel legitimate remedies for the
owners and the certificate relationship under the rules with the statutory rules that govern
legitimate liability are not unambiguous and clear (Ulfbeck, Andhov and Mitkidis 2019). The
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regulation of construction products demonstrates the European union legislation intervention in
the areas of liability for deficiencies in construction projects however the structure is beneficial
for the clients by constructing relationship in between the standards and the products, such
benefits are accompanying to the fundamental object of the regulation as enhancing unrestricted
movements of products of the construction (Becker 2015). If it is considered from the
perspective of liability under tort the premises is considered to be defective if they create a
source of hazard to the property or persons of them who are in the vicinity (Tran 2016). The
research provides unequivocal demarcation of hazardous defect gives rise to tortious liability
with the errors that are non-hazardous under the contract law. The particular context replicates
the contemporary positioning under English legislation that is subjected to the restriction that
hazardous deficiency until creates damage or injury to the property or person rather than that of
defective is not recoverable under the legislation of tort (Antonopoulou 2019). For instance, the
immunity that is privileged which the tortious law accords to the lessors and the vendors is
immunity is complicated to justify in law or logic. The insertion of warranty that is of contractual
in the agreement of sales for construction would facilitate the buyer with the damage regime that
is more beneficial, the contractual law does not limit damage recovery for financial harm in a
similar method as tortious law. Nevertheless the great relevance in ascertaining the legal remedy
of the buyer it is proper that defects in construction are sphere of contract and not of tortious law
then there invariably invocation of warranties in the sphere of construction deficiencies. It is
followed that the tenants, funds and purchaser could not trust the future probability of ability to
recover in tortious law in respect of deficiencies in construction or design of the buildings
henceforth the urgent and immediate decisions in the application of the warranties that are
collateral since the decision (Murphy and Clarke 2017). The warranty that is collateral
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6DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
endeavours for filling the gap in tortious law by establishing a contractual relationship. The
repairing cost is regarded as financial damage which is not recomposed in absence of proximity
relationship that imposes the duty to take care upon tortfeasors to protect the plaintiff from
monetary loss. The tortious liability is established in the case of Hedley Byrne vs. Hellers and
partners. the lordship categorises the deficiencies that no cause damage or injury to the person or
property given rise to financial damage that is recoverable under the law of contract and not in
tort absent proximity relationship.
Conclusion
Thus it can be concluded from the above-mentioned discussion that the aims of the contractor are
to make construction at low cost and where there is disruption or delay by the establishment in
the project they require reasonable compensation for incurring additional expense. The research
pacts with the contractual claims of the contractors for the reimbursement of expenses and loss
that is evolving from disruptions and delay initiated by the employer or his representatives under
the guiding principle of Irish nature of building arrangement in which the design is facilitated by
establishments.
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References
Akintoye, A., Beck, M. and Kumaraswamy, M. eds., 2015. Public private partnerships: a global
review. Routledge.
Antonopoulou, G., 2019. Code-Sharing Agreements under the Brussels Ibis Regulation and the
Notion of ‘Matters Relating to a Contract’. Journal of European Consumer and Market
Law, 8(2), pp.89-92.
Ashworth, A. and Perera, S., 2018. Contractual procedures in the construction industry.
Routledge.
Becker, M., 2015, May. Interface-liability. Tortious joint liability towards third parties of
network-like cooperating companies, and at the same time a contribution to liability in cases of
multi-causation. In Business Networks Reloaded (pp. 395-422). Nomos Verlagsgesellschaft mbH
& Co. KG.
Bock, T., 2015. The future of construction automation: Technological disruption and the
upcoming ubiquity of robotics. Automation in Construction, 59, pp.113-121.
Burr, A., 2016. Delay and disruption in construction contracts. Informa Law from Routledge.
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8DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
Clough, R.H., Sears, G.A., Sears, S.K., Segner, R.O. and Rounds, J.L., 2015. Construction
contracting: A practical guide to company management. John Wiley & Sons.
El-Adaway, I.H., Abotaleb, I.S., Eid, M.S., May, S., Netherton, L. and Vest, J., 2018. Contract
administration guidelines for public infrastructure projects in the United States and Saudi Arabia:
Comparative analysis approach. Journal of construction engineering and management, 144(6),
p.04018031.
Fewings, P. and Henjewele, C., 2019. Construction project management: an integrated
approach. Routledge.
Fuentes-Bargues, J.L., González-Cruz, M. and González-Gaya, C., 2017. Environmental criteria
in the Spanish public works procurement process. International journal of environmental
research and public health, 14(2), p.204.
Haapio, H. and Siedel, G.J., 2017. A short guide to contract risk. Routledge.
Keane, P.J. and Caletka, A.F., 2015. Delay analysis in construction contracts. John Wiley &
Sons.
Levin, P. ed., 2016, October. Construction contract claims, changes, and dispute resolution.
American Society of Civil Engineers.
Lupton, S., 2019. Which Contract?: choosing the appropriate building contract. RIBA
Publishing.
McNamara, A. and Sepasgozar, S.M., 2018. Barriers and drivers of Intelligent Contract
implementation in construction. Management, 143, pp.article-number.
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9DISPUTE MANAGEMENT AND CONTRACT IMPLEMENTATION
Murphy, R.M. and Clarke, S.M., 2017. A New Hope: Tortious Interference with an Expected
Inheritance in Rhode Island. Roger Williams UL Rev., 22, p.531.
Perera, N.A., Sutrisna, M. and Yiu, T.W., 2016. Decision-making model for selecting the
optimum method of delay analysis in construction projects. Journal of Management in
Engineering, 32(5), p.04016009.
Tayeh, B.A., Al Hallaq, K., Alaloul, W.S. and Kuhail, A.R., 2018. Factors affecting the success
of construction projects in Gaza Strip. The Open Civil Engineering Journal, 12(1).
Tran, A.H., 2016. The Internet of Things and potential remedies in privacy tort law. Colum. JL
& Soc. Probs., 50, p.263.
Ulfbeck, V., Andhov, A. and Mitkidis, K. eds., 2019. Law and Responsible Supply Chain
Management: Contract and Tort Interplay and Overlap. Routledge.
Willar, D., 2017. Developing attributes for evaluating construction project-based
performance. The TQM Journal.
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