{"id":893374,"date":"2017-12-14T13:35:52","date_gmt":"2017-12-14T20:35:52","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=893374"},"modified":"2017-12-14T13:35:52","modified_gmt":"2017-12-14T20:35:52","slug":"dispute-resolution-part-one-negotiating-construction-project-minefield","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/dispute-resolution-part-one-negotiating-construction-project-minefield\/","title":{"rendered":"Dispute Resolution – Part One: Negotiating Through the Construction Project Minefield"},"content":{"rendered":"

Kent B. Scott | Babcock Scott & Babcock<\/a> | December 14, 2017<\/p>\n

Introduction<\/strong><\/p>\n

Today\u2019s current economic climate puts great pressure on owners and contractors to get projects completed quickly and efficiently.\u00a0 These pressures have led to tighter time schedules and monetary budgets which have, in turn, created an increased number of disputes.\u00a0 Another developing trend is the increased costs in time, money, efficiencies and lost opportunities taken up by the dispute.<\/p>\n

The following article is the first of a three part series dedicated to the resolution of construction disputes using the tools of Negotiation, Mediation, and Arbitration.<\/p>\n

Negotiation<\/strong><\/p>\n

Most disputes are resolved through negotiation. This is the method by which the great majority of construction project issues are resolved.\u00a0 Timely communication of accurate information between the parties is essential. The most critical contract provision is the signature of the party.\u00a0 Without a cooperative party there is no contract that can be written that would avoid a dispute.<\/p>\n

Contract terms are tools to be used by the parties. The parties can use these tools to bring about different objectives.\u00a0 Often, the parties are not in harmony with their objectives which results in a conflict. \u00a0Most often conflicts between the parties are resolved through negotiation.\u00a0 Negotiation is the most widely used method of dispute and remains the most preferred.\u00a0 The parties to a conflict feel better about reaching a resolution by common consent than having the resolution imposed on them by a judge or arbitrator.<\/p>\n

There are seven components that make up a negotiation.<\/p>\n

One – Alternatives<\/u>.<\/strong>\u00a0 Most conflicts have more than one way of being resolved.\u00a0 In order for a conflict to be resolved information about the subject and personalities of the parties involved is essential. Consider the alternatives if a negotiated settlement is not reached and the resulting consequences. \u201cIf I accept this alternative what will happen.\u201d\u00a0 \u201cAre there other alternatives.\u201d\u00a0 \u201cWhat will happen if I walk away?\u201d<\/p>\n

Two- Interests<\/u>.<\/strong>\u00a0 What are your needs?\u00a0 What are your wants?\u00a0 What are the needs and wants of the other party?\u00a0 This is the part of negotiation that gets the parties beyond their position that has been supported by incomplete and\/or inaccurate information.\u00a0 Most attorneys are trained to be advocates and have a difficult time seeing options that may serve the interests of their client and the opposing party.\u00a0 Find the interests of the parties and you will be on the road to resolution.<\/p>\n

Three – Options<\/u>.\u00a0 <\/strong>Options are the possibilities that operate to create an agreement.\u00a0 They are the scientific equivalent of\u00a0 \u201chypothesis.\u201d\u00a0 It takes courage to explore different ways of seeing the problem.\u00a0 Attorneys want to please their clients but should not be a mirror of their client\u2019s thoughts and feelings. The best attorneys remain independent.\u00a0 The best clients are open to suggestions.\u00a0 The attorneys and clients that make resolutions happen develop the capacity to look past their positions and focus on their interests.\u00a0 They are able to come up with and test the feasibility of different options that would satisfy those interests.<\/p>\n

Four – Legitimacy<\/u>.<\/strong>\u00a0 Both attorneys and clients need to evaluate whether a proposed resolution is going to \u201cwork.\u201d\u00a0 In order to best make that assessment, it is best to measure a specific proposal against objective criteria.\u00a0 The feelings of the parties are important, but so is the \u201cwork ability\u201d of the resolution reached.\u00a0 If it doesn\u2019t work, the parties will climb back into the arena of conflict.<\/p>\n

Five – Commitment.<\/u>\u00a0 It takes commitment to reach a resolution and to carry out its requirements.\u00a0 Most parties want to have their problem resolved, but lack the commitment to reach that result.\u00a0 Attorneys vary in their level of commitment.\u00a0 Unfortunately there are those attorneys who commit themselves to prolong a dispute for one of the following reasons: (1) it is in their economic interest to keep the dispute going, (2) they have not taken the time to study the information required to enter into successful negotiations, and (3) they have not developed the independence required to deliver information to the client that it does not want to hear.<\/p>\n

Clients also vary in their level of commitment.\u00a0 The ability to reach a resolution to a conflict is inhibited by one or more of the following: (1) the client gets hung up on its position and is not able to see options, (2) the client is not willing to spend the time and effort or pay its attorney to take the time or make the effort to obtain and evaluate information about the dispute, (3) the client is not willing to accept responsibility for resolving the dispute (1) \u201cit\u2019s all his fault.\u201d of (2) \u201cthis is the attorney\u2019s job.\u201d<\/p>\n

Six – Communication.<\/u> \u00a0Communication means there is a \u201csender\u201d and a \u201creceiver.\u201d\u00a0 Too often people are caught up in what they are going to say to respond to what is being said (\u201csending\u201d).\u00a0 They do not focus on that which is being said (\u201creceiving\u201d).\u00a0 When everyone is \u201csending\u201d and no one is \u201creceiving\u201d the negotiations reach a stalemate. Effective negotiation requires two-way communication.\u00a0 Try incorporating the following tools in your negotiation tool box: (1) \u201cit sounds like you are saying\u201d, (2) \u201clet me see if I understand you\u201d, (3) \u201cwhat I am trying to say is\u201d, or (4) \u201ccan you clarify what you meant when you said….\u201d<\/p>\n

Seven – Relationship.<\/u>\u00a0 <\/u>Some disputes involve relationships that need to be continued (joint venture partners).\u00a0 Some relationships have the potential to develop for the better once the dispute is resolved (architect-owner, owner-contractor, contractor-subcontractor).\u00a0 Other relationships need closure (all of the above).\u00a0 The relationship factor is critical when evaluating the options for a resolution and determining which, if any, option fits the interests of a particular party.\u00a0 A successful negotiation is one in which the parties have improved their ability to work with each other in the future.\u00a0 The outcome of the conflict could create a relationship that is better able to deal with differences.<\/p>\n

A construction related conflict is a situation where two or more parties feel that the other party has a problem.\u00a0 Most conflicts grow out of wrong assumptions and rash judgments about the other party.\u00a0 It is natural to want to avoid conflict.\u00a0 But conflict is not the enemy.\u00a0 A conflict that is successfully resolved can lead to a stronger relationship.\u00a0 And besides – look at all of the things you learn while traveling along the road to resolution.<\/p>\n","protected":false},"excerpt":{"rendered":"

Kent B. Scott | Babcock Scott & Babcock | December 14, 2017 Introduction Today\u2019s current economic climate puts great pressure on owners and contractors to get projects completed quickly and efficiently.\u00a0 These pressures have led to tighter time schedules and monetary budgets which have, in turn, created an increased number of disputes.\u00a0 Another developing trend… Continue reading Dispute Resolution – Part One: Negotiating Through the Construction Project Minefield<\/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":[436],"tags":[9895,8931,9960],"class_list":["post-893374","post","type-post","status-publish","format-standard","hentry","category-dispute-resolution-2","tag-advise-consult","tag-alternate-dispute-resolution","tag-negotiation","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nDispute Resolution - 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