Construction, is the process of constructing a building or infrastructure,
construction contract provides a legal binding agreement, for both the owner
and the builder, that the execute job will receive the specific amount of the
composition or how the compensations will be distributed. The process involves building
or construct a certain project for various use like Residents and non-residential
houses, Industries and infrastructures. Each construction project must be
governed by the something called Contract. So that to maintain value of money
and also to protect the buyer.
Construction disputes refers
to the problems that can be faced during the construction process. The disputes
can arise during the formation, meaning, managing the contract and breach or
termination of construction.
Dispute, Disagreement
followed by opposition against something, divergence of interest or belief
between the parties depend on the effort of the parties under contract to
settle the differences that conflict will then grow into dispute, that means
dispute occur when the conflict is not well managed at the beginning. Once conflict grew into dispute it
become difficult to manage and thus the possibility of affecting project
schedule and cost.
Below are the possible causes of
dispute in construction contract.
Additional work, Disputes over the pricing and timing
of additional work required, or even whether a piece of identified work is in
the contract or not. This is always very embarrassing for the designers, who
would like to see them incorporated for free, when there is additional of work
a contractor should be compensated.
Legal
matters, Although some issues are very simple to implement under contract,
other are still very difficult and may need legal interpretation by legal body
(rules in regulation e.g. procurement act 2011 procurement regulation on 2013
different interpretation lead to the dispute) when this happen may led to the
dispute among parties in contract.
Delays, these refer to delays strictly beyond the contractor's
control. They may be caused by the owner directly, or by one of his agents. A
prime example is failure to give access to the site of the work in a timely
way. For example in the fixed price
contract that need an activity to end as stated time in the contract.
Technical
matters, especially
in building of high quality technical and vocational route through the education
system. The interpretation of the technical matters/issue may escalate into
dispute e.g. building style either American or Britain style American count
from ground floor while Britain count from the next floor.
Under pricing, is the pricing of an internal public offering (IPO) below its market value. When the offer price is lower than the price
of the first trade, the stock is considered to be under priced. A stock is
usually only under priced temporarily because the laws of supply and demand will
eventually drive it toward its value.
The described above are
the sources of the disputes in construction contract that when occurs should be
solved in different conditions.
