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The Law

Updated: October 23rd, 2009 10:07 AM GMT-05:00

Constructing the Construction Case - Tips, Traps and Tricks

Joel Levine
Dispute Resolution Journal

This article provides guidance to help drafters of construction contracts and subcontracts, and construction professionals who sign them structure their projects and minimize disputes. It also provides tips for counsel and their clients when construction disputes arise and the arbitration process will be utilized. Here are some steps to minimize disputes during negotiation: 1. Prepare a CPM. 2. Carefully draft the contract documents. 3. Read the contract documents. 4. Document everything. 5. Choose an arbitrator or panel. 6. Craft a strong detailed pleading. 7. Use your trial preparation skills to prepare. 8. Use demonstrative exhibits. 9. Organize exhibit books to make them easier for the panel to use. 10. Set up early. 11. Behave professionally. 12. Address the panel. 13. Make sure your client remains present throughout the hearing. 14. Make a clear opening statement. 15. Don't risk a poor cross of an expert because it just provides an opportunity for the expert to reinforce the adversary's position.

Humpty Dumpty sat on a wall, Humpty Dumpty had a great fall. All the king's horses, And all the king's men, Couldn't put Humpty together again.

Nothing in the nursery rhyme states that Humpty Dumpty was an egg or that the wall was in danger of collapse.1 If the rhyme were about a construction accident, we would say that this is an example of poor draftsmanship. What caused Humpty's fall? Did the wall collapse? If so, was it defectively constructed or repaired? Who was responsible for constructing or repairing the wall? What did the contract documents say? What should they have provided? Were the sureties notified? What about "the king's men"? Were they incompetent or excused by force majeure?

The only outcome construction professionals could deduce from this situation is that a potentially expensive and lengthy legal battle is likely to ensue. Arbitration would appear to be the superior forum. It is private; it uses a variety of streamlined mechanisms that make it quicker and less expensive than going to court; it is less aggravating and stressful; it gives the parties control over the process; and it allows them to select arbitrators with special construction skills and expertise.2 This removes the irrational jury factor and the possibility of a judge unfamiliar with construction deciding the merits in a bench trial. Arbitrators are more accessible than most judges and they do not make the parties wait months to decide pre-hearing motions. Arbitration is also less expensive because the grounds for challenging arbitration awards are extremely limited. The point to remember is that since arbitration is a private process, construction parties have the power to determine the rules of their arbitration universe.

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