{"id":891509,"date":"2017-01-05T15:42:38","date_gmt":"2017-01-05T22:42:38","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=891509"},"modified":"2017-01-05T15:42:38","modified_gmt":"2017-01-05T22:42:38","slug":"construction-dispute-resolution-model-involving-contractor-self-performed-remediation","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-dispute-resolution-model-involving-contractor-self-performed-remediation\/","title":{"rendered":"Construction Dispute Resolution Model involving Contractor Self-Performed Remediation"},"content":{"rendered":"

Jerome F. Rock | Jerome Rock Law<\/a><\/p>\n

This is a Construction Defect Resolution Facilitation Model customized for the unique conditions that often exist in a construction project; particularly when there is a dispute between the contractor and the owner concerning defects in the project. The unique feature of this approach is that the Neutral orchestrates the parameters of remediation that are acceptable to the Owner, and the Contractor self-performs the remediation without active involvement of its surety. The Neutral assists in identifying qualified construction professionals to articulate the work tasks, and to observe, inspect and approve completed operations. The work tasks are the result of a mediated exercise whereby the Owner and the Contractor (or others with potential liability) agree on the tasks, schedules and cost responsibility. The Neutral acts as a Standing Neutral to deal with good faith completion and acceptance with the work tasks.<\/p>\n

The foundation of this process incorporates the basic mediation\/facilitation approach to litigation settlement with which so many lawyers are familiar and comfortable. But there are enhancements, options and some adjustments to scheduling and sequencing of activities that can produce more timely, and hopefully more satisfying outcomes.<\/p>\n

Model will achieve best results in situations where the following conditions exist:<\/p>\n

\uf0a0 Adopted Early in the Dispute timeline: prior to initiation of arbitration or litigation preferred, but can work during early stages of arbitration \/ litigation.<\/p>\n

\uf0a0 An Owner with obvious defects or deficiencies (not exclusively $$ damages) that can potentially be self performed by Contractor<\/p>\n

\uf0a0 Solvent contractor (general or sub) that can self perform all or part of remediation.<\/p>\n

\uf0a0 Surety with indemnity obligation from Contractor<\/p>\n

\uf0a0 Architect \/ Engineer \/ Supplier \/Subcontractor with potential exposure<\/p>\n

\uf0a0 Insurers of Architects \/Engineers<\/p>\n

\uf0a0 Facilitator\/Neutral with skills to coordinate all the tasks, facilitate cooperation among all stakeholders and provide leadership to complete undertaking.<\/p>\n

As an initial framework I have identified Six Stages for Contractor Self -Performed Remediation, explained below.<\/p>\n

Stage One: Suggest Undertaking Concept and Obtain Buy-In <\/strong><\/p>\n

\uf0b7 Educate all parties on plan concept and explain requirements for success.
\nCost Advantage to all parties: Avoided \/ Reduced litigation expenses, lawyers, \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 experts, staff.
\nCost Advantage to Contractor: Cost Effective Self-Performance vs. Needlessly \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 expensive Third Party Remediation.
\nCost Advantage to Architects \/ Engineers: Assistance and cooperation in design of \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 remediation effort can reduce cost.
\nAccelerated Time Schedule: Work is undertaken and completed in less time, owner \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 can benefit from earlier use of project.
\nBenefits to all parties: Avoid Risk of Adverse Outcome through arbitration \/ litigation.<\/p>\n

\uf0b7 Obtain Buy-In, perhaps a Memorandum of Understanding agreeing to cooperate, establish realistic expectations.<\/p>\n

\uf0b7 Agree on Stand \u2013Still, Tolling Agreements, confidentiality of settlement negotiations, etc.<\/p>\n

\uf0b7 Establish time line for each Stage, agree to cost sharing for initial Stages<\/p>\n

Stage Two: Objective and Unbiased Investigation <\/strong><\/p>\n

\uf0b7 Agree on the process to identify and select the \u201cExpert\u201d qualified in the subject and acceptable to the parties. Review any reports of specialists or experts already retained by parties.<\/p>\n

\uf0b7 Establish a scope of work for the \u201cInvestigation\u201d Phase (in cooperation with the selected \u201cExpert\u201d).<\/p>\n

\uf0b7 Complete and review the \u201cInvestigation\u201d phase.<\/p>\n

\uf0b7 Based on the identified construction defect(s) identified in the \u201cInvestigation\u201d Phase, agree that a multi-stage \u201cFramework for Remediation\u201d Phase is feasible; enumerate and agree on assumptions, establish a scope of work for Phase 1 of the Framework for Remediation.<\/p>\n

\uf0b7 Definition of \u201cInspection\u201d Phase: The Model envisions a qualified \u201cExpert\u201d that can perform a document review and field condition assessment of the project defects producing an objective and unbiased report of conditions\/defects and conformance or variance with project documents. The \u201cExpert\u201d (or several experts) can be an architect, engineer, vendor or specialty contractor with experience and qualifications dealing with a type of defect or deficiency. One key factor is that the \u201cExpert\u201d should have the skills and ability to go from\u00a0identifying the defect or deficiency to pragmatic construction options for remediation. Great effort should be made in selecting an \u201dExpert\u201d that is acceptable to all parties.<\/p>\n

\uf0b7 The\u201d Inspection\u201d Phase is a stand alone effort to objectively identify defects or problems with the project, but contemplates a follow-on task for the \u201cExpert\u201d , the \u201cFramework for Remediation \u201c .<\/p>\n

Stage Three: Phase 1 of the Framework for Remediation<\/strong><\/p>\n

\uf0b7 The objective of Phase 1 of the \u201cFramework for Remediation\u201d is to suggest a range of general options that would remedy the observed defects or deficiencies. Depending on the type of project and the defects, the options could range from maintaining functionality to replacing \u201cas specified\u201d. The cost of the options, and the relative responsibility of each party, will determine the approach to each subtask. The focus is to address remediation with a pragmatic approach that contemplates the best use of Contractor resources, existing acceptable work in place, all within the limits of acceptability set by the Owner. Financial contributions or commitments may be expected from parties and can be used to fund the Contractor effort, or directly compensate the Owner. Financial terms will be negotiated and included in the formal Settlement Agreement (Stage Five).<\/p>\n

\uf0b7 Parties Review Phase 1 of the Framework for Remediation and agree only that Phase 2 of the Framework for Remediation is feasible. The parties commit technical resources and management with authority to make decisions during Phase 2.<\/p>\n

\uf0b7 Engage \u201cExpert\u201d with scope of work to assist with Phase 2 of Framework for Remediation.<\/p>\n

Stage Four: Phase 2 of the Framework for Remediation.<\/strong><\/p>\n

\uf0b7 With assistance of \u201cExpert\u201d and the Neutral, parties agree on specific Scope of Work, with discrete Work Tasks with details on means and methods to complete the \u201cFramework for Remediation\u201d.<\/p>\n

\uf0b7 Establish Schedule and Budget costs for each Work Task.<\/p>\n

\uf0b7 Identify Inspector of Work Tasks, establish standards for acceptance.<\/p>\n

\uf0b7 Identify opportunities to leverage vendors or material suppliers.<\/p>\n

\uf0b7 Phase 2 of the \u201cFramework for Remediation\u201d contemplates a final give and take between the Contractor, Owner and other parties that eventually results in a definitive Scope of Work that embodies the future performance of the Contractor that is required under the formal Settlement Agreement (Stage Five).<\/p>\n

Stage Five: Negotiate and Execute Settlement Agreement<\/strong><\/p>\n

\uf0b7 Negotiate terms and Execute Settlement Agreement anticipating successful completion of Work Tasks for Framework for Remediation. Consider:
\n$ contributions by all parties
\nTime Schedule for completion \/ performance
\nForm of Releases \/ Dismissal \/ Withdrawal of pending actions
\nSurviving warranties after completion of Work Tasks
\nProvisions for Default by a party, agreement on forum for further resolution of \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 disputes
\nIncorporate Real Time Dispute Resolution (Standing Neutral) during execution of \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Work Tasks
\nRole and Responsibilities of Standing Neutral<\/p>\n

Stage Six: Contractor Self-Performance of Remediation <\/strong><\/p>\n

\uf0b7 Contractor Execution of Work Tasks<\/p>\n

\uf0b7 Standing Neutral involved as needed<\/p>\n

\uf0b7 Inspection and Acceptance of Work Tasks by Expert<\/p>\n

\uf0b7 Final Release \/ Dismissal \/ Withdrawal of pending actions.<\/p>\n

Project Participants: <\/strong><\/p>\n

Mediator \/ Standing Neutral: Jerome F. Rock, Esq.
\nOwners\u2019 Counsel: Foster Swift Collins & Smith, PC
\nContractor\u2019s\/Surety\u2019s Counsel: Deneweth Dugan & Parfitt PC
\nArchitect\u2019s Counsel: Sullivan Ward Asher & Patton PC
\nOwner\u2019s Representative Counsel: Kotz Sangster Wysocki PC<\/p>\n","protected":false},"excerpt":{"rendered":"

Jerome F. Rock | Jerome Rock Law This is a Construction Defect Resolution Facilitation Model customized for the unique conditions that often exist in a construction project; particularly when there is a dispute between the contractor and the owner concerning defects in the project. The unique feature of this approach is that the Neutral orchestrates… Continue reading Construction Dispute Resolution Model involving Contractor Self-Performed Remediation<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,164,436],"tags":[8931,12,9882,204,9883],"class_list":["post-891509","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-dispute","category-dispute-resolution-2","tag-alternate-dispute-resolution","tag-construction","tag-construction-dispute-resolution-model","tag-construction-disputes","tag-contractor-self-performed-remediation","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction Dispute Resolution Model involving Contractor Self-Performed Remediation - 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