Apply best practices to prevent claims and disputes (i.e. FEP, DRB, Documentation, communication, etc.)

These incidents not only cause delays in the project schedule but also lead to unnecessary expenses and frustrations. However, by adopting the best practices, you can prevent or significantly reduce the likelihood of these problematic scenarios. The following methods and practices apply primarily to those preparing for the PMI Construction Professional (PMI-CP) exam, but they are also beneficial for project managers at all levels.

1. Front-End Planning (FEP)

FEP is a proactive management tool that addresses potential risks and issues at the earliest stages of a project. The goal of FEP is to clarify project requirements, objectives, and expectations, as well as to identify and mitigate potential risks. Having a well-developed FEP can decrease the likelihood of claims and disputes by enhancing project scope clarity and responsiveness to risks.

Example: If a construction project is expected to impact the local community due to noise or dust, a mitigating strategy identified during FEP might be to schedule the most disruptive work during periods when it will cause the least disturbance to the local population.

2. Dispute Resolution Board (DRB)

A DRB is a panel of impartial experts assigned at the onset of a project with a primary task to monitor project progress and facilitate resolution of disputes before they turn into claims. The three-person DRB typically comprises experienced industry professionals who provide advice and recommendations when disagreements arise.

Example: If there is a dispute over whether weather conditions constitute a valid reason for a project delay, the DRB can step in, assess the situation, and offer a recommendation.

3. Documentation

Effective documentation is critical to prevent claims and disputes in construction projects. It involves maintaining records of all project activities, including decisions, changes, activities, and issues. Proper documentation provides evidence in case of disputes and enables teams to identify and address issues before they escalate into serious problems.

Example: If a dispute arises over the quality of materials used in the construction, adequate documentation like purchase orders, invoices, delivery slips, and test results can provide clear and objective proof.

4. Communication

Consistent communication is vital in the successful completion of construction projects. Clear, concise, and open communication ensures information is cascaded down effectively, thereby reducing misinterpretations and misunderstandings, which can lead to disputes. Regular team meetings, efficient reporting systems, and a culture of open dialogue can improve communication within the team.

Example: If a change in design is not communicated effectively to the site team, this might lead to construction errors, which could further lead to disputes between the stakeholders.

It is worth noting that all these strategies connect and overlap, and using them together will give the utmost results. A well-crafted FEP sets the ground for effective communication, which is then documented and monitored by the DRB. It’s this combination of practices that creates a well-managed, successful project with minimized occurrence of claims and disputes.

To solidify these practices in an organization, continuous training and reinforcement are necessary. Encourage your team to gain industry certifications like the PMI-CP. This certification not only provides standardized training on these best practices but also enhances an individual’s credibility and capacity to handle complex construction projects.

In conclusion

The road to a successful construction project involves various aspects, including proactive front-end planning, effective dispute resolution boards, thorough documentation, and comprehensive communication. By integrating these practices in your workflows, you can reduce the occurrence of claims and disputes. It is evident that the PMI-CP serves as a robust route map to ensuring project success in construction management.