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No construction method is perfect. Thus, parties entering into any construction contract may find it very beneficial to devote attention, early in the contracting process, to the express provision of some mechanism for resolving disputes. Out-of-court methods of dispute resolution have become increasingly popular. The choice of nonjudicial mechanisms for the resolution of contract disputes is motivated, at least in part, by the desire to avoid ever-increasing costs and time involved in litigation. The advent of the new approaches to construction-fast tracking, design-build, and construction management-brings more uncertainty into the construction process, since many specifics are not determined at the time the contracts are signed. These uncertainties inevitably lead to more disagreements, which in turn increase the need for some satisfactory means of resolution. This paper analyzes some methods in which an impartial, nonjudicial party is involved in the dispute settlement process. It is assumed readers are not familiar with how voluntary, binding arbitration is being used in traditional owner-contractor documents. Thus, first, a brief description of that process is given to serve as a basis of comparison. Second, the new approaches to construction and their impact on traditional roles and responsibilities are discussed. Finally, the implications of these changes on the dispute settlement process, and the different settlement methods available are analyzed.

Dispute Management under Modern Construction Systems