Methods for effective dispute resolution.

Disputes have become an ever-increasing part of today's construction projects. Seemingly minor issues can quickly escalate into serious disputes, with crippling consequences for parties to a construction project.

The rising cost, delay and risk of litigating such disputes has led construction industry professionals - owners, contractors, architects, engineers and attorneys - to look for new and more efficient ways to resolve these disputes without negatively affecting their projects - and without "scorched earth" litigation.

Over the past several years, the industry has taken steps to avoid litigation and control disputes through the use of several different mechanisms. Each of these mechanisms can be used at almost any stage of a construction project. They range from simple negotiation to Alternative Dispute Resolution (ADR) techniques, to an exciting new concept for incorporating dispute resolution techniques from the outset of your project.

While they vary, each of the mechanisms is based upon two basic principles: resolution sooner rather than later, and resolution that is less confrontational. Delaying resolution, or attempting to ignore a dispute, inevitably makes it harder to resolve.

The Project Neutral

Despite the best intentions of owners, contractors and attorneys to avoid construction disputes and claims, they still occur. To avoid "scorched earth litigation" after a claim already has occurred is to use the Project Neutral.

The Project Neutral provides all parties to a dispute with an independent expert analysis of the claim. Through this innovative technique, the Project Neutral, actually a team composed of construction industry experts, objectively and independently performs fact-finding, technical analysis, delay and damage evaluations, and provides conclusions and recommendations so that the parties can settle their own differences and avoid the relationship-destroying results that so often follow a claim.

The Project Neutral team assigned to a dispute is headed by a trained mediator, so that if mediation becomes necessary, the parties can move quickly to reach a mutually acceptable solution - without having to educate someone new.

While the Project Neutral is an innovative way to resolve existing claims, it also can be implemented at project inception to resolve disputes that occur throughout the project. The Project Neutral concept is based upon one basic tenant: disputes are inevitable, claims are not. How you deal with disputes during the project will determine whether or not you have claims.

Through the Project Neutral, experts are assigned to monitor the project's progress, respond to disputes that are presented to them by the parties and provide unbiased evaluations to both sides at the appropriate field or executive level. Thus, the likelihood that disputes will be settled amicably and quickly increases dramatically.

Whether The Project Neutral is used as a preventive measure, or when a dispute is surfaced, it carries several common benefits:

* Construction industry experts - immediately available and already knowledgeable about the project and the people - who are committed to the project and available to act quickly.

* Independent fact-finding performed by technical specialists and experts with access to the documents and records of both parties - reducing duplication of effort and cost.

* Ability to objectively analyze and evaluate the specific issues of liability, costs, schedule impact, damages and potential remediation.

* Conclusions and recommendations provided to the parties and then active participation in resolution of the dispute, including mediation, by trained senior industry professionals, already familiar with the issues and the project.

* Costs, delays and disruptions minimized, allowing the primary focus to remain on the primary objective (i.e. the successful project).

* The parties maintain control in a private process dealing only with knowledgeable professionals.

Also, the Project Neutral can be used in conjunction with partnering. Partnering agreements state that disputes will be resolved at the appropriate level, first at the field level and later at the executive office. But these agreements do not provide expert assistance to the parties to facilitate dispute resolution. The Project Neutral does just that. This way, disputes can be more quickly resolved with the regular involvement of an objective, experienced third party.

Whether disputes and claims already have occurred, or used as a technique to avoid them in the future, the Project Neutral is a valuable and effective tool for dispute resolution.