The nature of construction projects has typically been characterised by adversarial relationships between clients, contractors and suppliers. In recent years there have been conscious efforts from both private and public sector clients and contractors to assume a less adversarial approach to projects by adopting new contract models like alliancing and partnering.
Clients are increasingly becoming mindful of the synergies between themselves and key suppliers and are entering into partnering or long term framework arrangements to realise best value and common solutions on their capital projects expenditure.
Innovative contract models and forms of contract place new responsibilities on parties to contracts. It is important for stakeholders to understand the consequences of these long term arrangements and to ensure there is an equitable distribution of risk. The complex nature of the construction process is likely to give rise to disagreements and differences of opinion between parties. Under the new contract models, alternative forms of dispute resolution, such as negotiation, mediation and arbitration, rather than litigation, are the first step in resolving disputes between parties.
How PricewaterhouseCoopers can help you
In a constantly changing marketplace, our Capital project services team is ideally placed to offer advice to clients and contractors on the latest contract models. At any point in a project, we can assist in the process of negotiated settlements. We are accustomed to evaluating offers throughout the negotiation process and have also helped our clients navigate the industry’s Alternative Dispute Resolution forums, including mini-trials, mediation and arbitration.
