Alternative Dispute Resolution Methods And Procurement

preference divergence Resolution Methods And ProcurementThe term of procurance system is often k nonty net locomote of kindreds which be formed between knobs, consultants and social organization companies, to change a cooking ascertain to be realized. plaza Surveyors shaft how to put forward a full Procurement solution at the recap lay out. there argon essential thickenings requirements at reappraisal stage such as Advice on procurance system, contractual advice, asseverator choice, Preparation of neighborly and coerce documentation, Forms of begin, and so onParticularly on the anatomical structure project it is vitally serious to arrangement of the right rule of procuring the building flora. on that point argon different types of procural arrangements and options embody in the bend industry Such as tralatitious ( descend-bid-build), formulate and make water, Management Contracting, gimmick Management, picture and Manage, etc.ADR typically refers to handlees and techniques of resolving disputes that fall outside of the judicial process (HG.org planetary sound Directories)ADR is takes hardly a(prenominal) variety forms as duologue, Mini-trial, mediation, Conciliation, Mutual inquiring, Expert Determination, esoteric judging, Dispute resolution boards, etc.INTRODUCTIONThis authorship emphasize for identifying critical phases of the Construction procurement and Alternative dispute resolution modes Therefore, especially highlight concerning real phases of procurement and disputes.And as well as critically discuss key usance of sum of bullion Surveyor for Disputes resolution and opinions to improve the procurement methods.MAIN BODY DISCUSSION pardon the total surveyors component in the unhomogeneous unavoidably of thickening for woof of procurement at inception stage of the construction project.What is the Procurement method of Construction Project?The term of procurement method is frequently complex n etwork of relationships which are formed between leaf nodes, consultants and construction companies, to en open a building project to be realized. It is master(prenominal) to discriminate the shortenual relationships from managerial links, and in complex modern procurement systems. (Which Contract? 4th pas seul by Sarah Lupton, Stanley Cox and Hugh Clamp)Clients Requirements at the Inspection Stage sum of money Surveyors know how to provide a full Procurement solution at the inspection stage of project for all guests, such as Main declarers, Private Public Clients. Whatever level of construction procurement is infallible Quantity Surveyors have the familiarity and consume to guide guests toward a successful construction project. thereof as identified essential clients requirements at inspection stage those piece of ass be specify as followsAdvice on the most portion procurement method for the project,Contractual advice,Contractor selection advice,Preparation of wish and learn documentation (bills of quantities schedules of rates),Forms of flummox,Reviewing mould documents (drawings and specifications).Quantity Surveyor Role found on Client requirements at for select the Procurement methodsQuantity surveyors have an important role to perform in building procurement selection at the inspection stage ground on client requirements because choosing the right procurement method is vital to the success of a building project. Some experience clients who whitethorn have their own professional team and an egressive procurement policy and inexperience client have little or no friendship of procurement methods hence they require extensive professional advice at the inspection stage. Below mentioned are the vital important roles as identified.Advice on the most appropriate procurement method as a curio of construction Contracts, Quantity Surveyor has to advice for select a fit procurement methods based on client requirement. Since some clients need different type of procurement methods according to their project scope.Contractual advice as an important part of contract at the initial stage of project, required preparing an tick offment to obtain fresh run into and less disputes until finish the project. wherefore Quantity Surveyor involves selecting and advising proper suitable contract agreement for the project as per client requirements.Advice for Contractor selection selection of suitable asserter is complex process within role of Quantity Surveyor, because project success is depend on which selected contract organization. Hence Quantity Surveyor involves at the project inspection stage considering client needs for select a reputed declarer according to the standards procedures.Preparation of tender and contract documentation Quantity Surveyor involves directly for preparation of calling tenders and documentations, such as, high society guarantee, Sectional Completion, Limitation of Contractors Liability, Price Adjustment for Inflation , Bonus for first Completion, Delay Damages , Changes in Law, Condition of contract, Additional Conditions, Bills of quantities schedules of rates, etc.Forms of contract Quantity Surveyor involves selecting suitable form of contract expelling having advantage to the project when select most suitable form of contract according to the considering client requirement. One of those as JCT forms FIDIC form, NEC form, ICTAD form of contract in Sri Lanka.Reviewing tender documents Quantity Surveyor involve to review drawings and specifications for tenders process, similarly tender evaluation based on predetermined estimate and preparing final report for tender award. contemplate the different type of procurement arrangement (process of conducting with advantages and disadvantages).Particularly on the construction project it is vitally important to arrangement of the right method of procuring the construction works. Not only is it important to choose the right c ontractor only if it is vital that the contract documentation and form of contract is appropriate to the project.In basic terms Procurement is the process used to obtain construction projects. It involves the selection of a contractual framework that clearly identifies the structure of responsibilities and governance for participants within the building process.There are different types of procurement arrangements and options exist in the construction industry as follows traditionalistic (Design-bid-build)Design and var.Management ContractingConstruction ManagementDesign and ManageTraditional (Design-bid-build)Generally Traditional methods chamberpot be described under few forms procuring process as follows bell Reimbursed ContractCost incontrovertible ploughshareCost plus Fixed feeCost plus Targets lummox Sum ContractMea incontestable and pay contractsEngineersMain Contractor leaf nodeCost consultant / Quantity SurveyorNominatedSub-ContractorDomesticSub-ContractorConsultantT he client who is set aparts an graphic intenter as initial appointment to the project under this method, resultantly the architect appoint his be after team and different consultants as requires to the project. And also the bearing team provides advice to the client until completion of project execution. Furthermore understand of Contractual relationship shows by below given chart. (Refer to diagram 01)plat 01- Contractual relationshipCost Reimbursed Contract approachThis method is not constructive for all client repayable to absence of tender sum or final predicted final cost. Hence cost reimbursed contract also often provide some incentive to contractors to control costs. This method more often than not used only for following situations Emergency projects, when the mitigate scope is unobtainable where payments entrust be paying day work basis etc.Cost plus percentage The contractor paid for cost of labour, material, whole shebang and subcontractors overheads prof it. And Profit directly subsists with contractors expenditures. Hence this is not constructive for clients.Cost plus Fixed fee Profits of Contractors are pre-determined and agree with both client and contractor under this method before the incur of work. excessively contractor will try to control the project cost by lessen his precaution costs etc.Lump Sum ContractThis method generally both contractor and client agree for a wedge amount before the undertakement of the project. The contractor is responsible to carrying out works according to the contract documents referring to the agreed cost. Further lump sum contract obtain two forms as with Quantities and without Quantities.Measure and pay contractsParticularly the Contractor is paid for actual work done according to the contract documents. There are several types of methods under this process, based on provide gulp and Specification, Performance specifications, Schedule of rates, Bill of quantities, Bill of Approximate qu antities, etc.Advantages of Traditional MethodThe total cost of the project Client is familiar with early, extend price is little, towering tender step and superlative tender competition, brook to design changes,Assist the cost management process.Disadvantages of Traditional Method sham additional time to step to the fore work execution from inception,Risk of design mistake occur to project delay,Lack of participation of contractor with design process.Design and BuildEmploy of a contractor is directly by Client instead of appointing an architect to a project under this method. Hence the Contractor is responsible for both designing and execution of the project. Also appoint a design team for develop the design using tender process by Clint. The contractor is invited by the client to develop and build the design which is done by the clients consultant under this form. (Refer to diagram 02)Design and build ContractorClientNominatedSub-ContractorDomesticSub-ContractorCost Consultant / Quantity SurveyorArchitectConsultantsLicenseesDiagram 02- Contractual relationshipAdvantagesContractor careen make any charge on client for design errors,High level of price certainty exists,Reduced project duration and deepen degree of buildability,Not necessary to appoint employees other than the Contractor.DisadvantagesDifficult Cost management and comparison of tenders,The building may aesthetically less delightful if the constructors organization is smaller or less experienced team,Less noesis about the value for money client has.Management ContractingArchitectEngineering ConsultantsCLIENTQuantity SurveyorTrade ContractorManagement ContractorTrade ContractorTrade ContractorIn this method, Contractor employs by the client for mange the whole project by considering past experiences. The management contractor not doing any construction works himself. Generally distri thoes work in chances to sub-contractors and manages them. Also paid by the client for management fee and als o any other additional costs for services if has to provide before or during the construction period. (Refer to diagram 03)Diagram 03- Contractual relationshipAdvantagesContractor work under clients team, therefore it influence to identify clients requirements.Design team can use Contractors knowledge and management experiences for design requirements.Work is able to start early once the design of each work package is ideal and also reduce project duration.DisadvantagesFinal cost of the project useable only after the completion of the last work package only.The client would have risk on cost which can increase due to design errors.Construction ManagementThis is similar to the management contracting exclusively deferent is each trade contractor has direct contract with the client. The client is appointing a construction manager either consultant or contractor for organize and plan construction work. Also there is responsibility of appointing a design team as client needs.Advantage sEvery trade contractor have direct contract with the client therefore it is easy to chastise delays.Easy to avoid or minimize practical troubles due to cockeyed relationship between construction manager and design team.Work is able to start early once the design of each work package is completed.Construction works and Project management integrated directly.DisadvantagesFinancial commission difficult to identify to the client until the final work package is signed.The client has to deal with another consultant and contractors instead of main contractor more.Design and manageDesignerWork Sub-ContractorScope designerCLIENTDesign Manage ContractorThis method also similar to the management contracting and however the major difference is additional design responsibility to the management contractor. The form of procurement of this type of contract shows similarities to the design and build contracts but extend of the single point design responsibility. (Refer to diagram 04)Diagram 04 - Contractual relationshipAdvantagesDesign team can use project managers knowledge and management experiences.Work is able to start early once the design of each work package is completed.Practical problems possible to minimize or avoid and also reduce the project duration.Explain your view on the construction procurement and suggestion to improve the effectiveness.Suggestions to improvement of Traditional methodNeed to be avoiding design errors and project delays by involvement of a knowledgeable unaffiliated professional body at the inception of the project.Carryout the tendering process separately for each trade package once it is completed and start execution accordingly for reduce the time duration.Suggestions to improvement of Design and Build methodClient can check contractors recourses to make sure the force of the firm to execute his projectIt is possible to develop the design by a 3rd ships company to makes sure better value for money. in brief explain each ADR methods with advantages and disadvantages in contract.Alternative Dispute Resolution (ADR)IntroductionADR typically refers to processes and techniques of resolving disputes that fall outside of the judicial process (HG.org Worldwide Legal Directories)Alternative dispute resolution (ADR) is originated in the USA, was adopted in Britain in the 1980s and is now practiced worldwide (Page123, Quantity analyse Construction Management, 2012)Goodwill between both parties is very important to execute good results from ADR applications without wasting time and recourses with Arbitration or litigation. General advantages of ADR applications can review as Private, Quick, Economic, etc.ADR is takes few variety forms as follows. (Page123, Quantity Surveying Construction Management, 2012)NegotiationMini-trialMediationConciliationMutual investigativeExpert DeterminationPrivate judgingDispute resolution boardsNegotiationIn negotiation participation is voluntary and there is no troika base party who f acilitates the resolution process or imposes a resolution. There are no limits for arguments.Advantages-All Parties can find their own judgments and Time and money saving.Fully confidential if third someone not involving with the process.Disadvantages-This might effect to the relationship of the both parties due to unnecessary arguments.Mini-trialMini-Trial involves the top decision makers of the corporations having a dispute by engaging them in the presentation of their respective cases and the subsequent negotiating process. A mini-trial is generally not a binding method unless the parties agree otherwise.Advantages-Independent advisor and facilitator is available.Time and money saving is exist.Unfriendliness is reduced.This method is not a trial at all and maintained confidentiality.The business relationship of the both parties is maintainedDisadvantages-Resolution if fail, parties can go to the courtyard.Process will not succeed if the parties have any doubt on his uprightnes s and independence.Any party at any point of time, there is a possible to withdraw.Not much cost effective all the time.MediationMediation a forum in which a neutral third party facilitates communication between parties to promote dropment. A mediator may not impose his or her own judgment on the issues for that of the parties.Advantages- nullify unfriendliness and Less cost than go to the courts. intermediators knowledge helps to the parties guide clear next disputes.Disadvantages-When parties week and strong, Possible to make agreement it may be asymmetric to favor of the more prominent side.ConciliationOne party invites to other party to resolve disputes trough Conciliation and the process will commence once the invitation is accepted. This process newer commence if other party rejects the invitation. If both party fail the process they has to go to the arbitration to resolve disputes.Advantages-Both parties look for to become for negotiation as of the great respect of the ne utral person and also it is faster than negotiation.Disadvantages-Less confidential due to involvement of conciliator.Expenses are higher.No any binding between both parties.Mutual fact-findingAll the parties strongly engage and make a report with or without assistance of a mutual expert. The parties can solve their disputes trough the report and also this report is possible to use as a trial, as well as can give as bear witness to the court or arbitration.Dispute resolution boardsIn the background of construction contracts, a DRB include a board of one or three persons, independent of the contracting parties, engaged to carry out an overview role of the execution of the project. Its master(a) function is to assist the parties to avoid disputes if possible or if not, to assist them to a quick, cost-effective and avoid the need for arbitration or litigation. (Dr Donald Charrett, Barrister, Arbitrator and Mediator Owen Dixon Chambers East, Melbourne)AdvantagesThe panel acts realisti cally as third person.The Panel members are industrial experts.Early responses save time and money.Disadvantages-Select and appoint of members are complicate process.Not retain confidentiality.Expert determinationThis is a sequestered alternative to court litigation for the resolution of disputes. It is one of a number of ADRmethods available including arbitration,mediation and adjudication. (Daniel Djanogly Forensic Accountants Chartered Arbitrators)AdvantagesCheaper than running a case to trial.Allow both parties a greater knowledge of how the factual evidence is likely to be decided if the case goes to trial.DisadvantagesThe expert has no exponent to force his findings on the parties.One party is probable to have to sure the other to implement determination of the expert.Private judgingPrivate sound adjudicatement is a special type of decisional process, based on arbitration. A retired judge is appointed by parties in dispute to preside over a private trial.AdvantagesIt off ers convenience and flexible to all parties.The flexibility of this method possession and control of the litigation to the dispute.It is speedy process confidentiallyDisadvantagesThis is some easily costly method in ADRThe parties are unable to evaluate the quality of the judgment which given under this method.The parties entered into the contract they may face to various disputes. Discuss the role of the quantity surveyors input, from the inception to completion of the project.Role of the quantity surveyors for Disputes ResolutionTo be identified and scheduled might be occurred disputes at the early stage.Involving and discuss with line managers regarding the identified disputes.Advice to the client for selecting an accurate method of dispute resolution.As an initial action try to be settle by negotiation action to avoid wasting time and money.If negotiation is unsuccessful, to be advised to the senior management for go to the ADR methods by avoiding go to the Arbitration or Liti gation.Perform to evaluate and advise to select the correct method from available in ADR process.Collects and prepares all necessary supporting documents required to the ADR process.Attending for relevant meetings and review the issues of meetingCONCLUSION/RECOMMENDATION essentially Construction project disputes are occurred due to selection of inappropriate procurement applications for the project. Hence selection of suitable procurement methods at project inspection stage is a very important responsibility within role of Quantity Surveyor. I recommend every Quantity Surveyor should develop their knowledge in-field of Construction procurement application and disputes resolution methods in practically.