Post on 19-Jan-2016
description
Introduction to Construction Dispute Resolution
Feniosky Peña-MoraGilbert W.Winslow Career Development Associate Professor of Information Technology and Project ManagementMIT Room 1-253, Phone (617)253-7142, Fax (617)253-6324Email:feniosky@mit.edu
Intelligent Engineering Systems LaboratoryIntelligent Engineering Systems LaboratoryCenter for Construction and Research EducationCenter for Construction and Research Education
Department of Civil and Environmental Department of Civil and Environmental EngineeringEngineeringMassachusetts Institute of Technology Massachusetts Institute of Technology
Case Study: Tren Urbano Project
2Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Definitions WHAT
• Light Rail Transit Line in San Juan, Puerto Rico
• Completion of the First Phase by November 2001 at a Cost of $1.5 Billion
WHO• Puerto Rico’s Department of Transportation and Public Works (DTPW)
• Parsons DeLeuw, Inc
• Federal Transit Administration (FTA)
• Siemens Transit Team
• US Partners : Daniel, Mann, Johnson and Mendenhall (DMJM) and Frederic R.Harris, Inc
• Local Partners: Eduardo Molinary and Associates (Architects), Barret and Hale and Associates (Consulting Engineers)
WHY• Real-Life Application of DART
HOW• Understand Project Circumstances
• Identify and Analyze Potential Conflicts
• Design Conflict Management Plan
• Review and Revise the Plan Based on Project Data
3Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
• Partnering• Change Order Process• Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
• Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
4Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Tren Urbano Project Story 1989: Conceptual Design of Tren Urbano January 1993:
Review of Developed Concept by a New Executive Team
February 1993: Tren Urbano Designated as One of the
Four Turnkey Demonstration Projects in the Nation
January 1994: Submittal of Successful Bid for Federal
Assistance to the US Congress
April 1994:$42-Million Contract for GMAEC Services
Between DTPW and Joint Venture
5Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Tren Urbano Project Story Tren Urbano Office (TUO): Planning and Environmental
Permitting Process, Partial Plans and Systems Specifications, Structuring Procurement Process
November 1995: Approval on Publication of Final Environmental Impact Statement (FEIS)
February 1996: FTA’s Approval on FEIS and Record of Decision
March 1996:$307.5 million Full Funding Grant Agreement Between DTPW/HTA and FTA
August 2, 1996: Groundbreaking for Phase I Alignment
6Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
• Partnering• Change Order Process• Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
• Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
7Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Project Description
8Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Phase I Alignment
9Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
• Partnering• Change Order Process• Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
• Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
10Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Procurement Strategy Phase I Project Divided into Six Design/Build
Contracts for Civil Structures and One System and Test Track Turnkey (STTT) Contract
STTT Contract
• Construction of Two Stations and 2.6 Km of Test Track, Maintenance and Storage Facility, Operations and Control Center
• Delivery of train Vehicles and Systems
• Systems Integration
• System Operations and Maintenance for a Minimum of Five Years
11Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Tren Urbano Hybrid Approach
Types of Procurement Party Also referred to as
12
TurnkeyDBOT
Siemens Transit Team (STT)
Turnkey Contractor
3
Construction Management (at no risk)
GMAEC Owner’s Consultants
45
Multiple PrimesDesign-Build
Alignment Section Contractors (ASC)
Civil Contractors
12Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Organizational Chart
Puerto Rican Department ofTransportation
and Public Works(PRDTPW)
Puerto Rican Highway andTransportation Authority
(PRHTA)
Other Puerto RicanPublic Works and
Authorities
Tren Urbano Office(TUO)
Consultants toowner
(GMAEC)USA
Siemens TransitTeam(STT)
German/Other
ASC(ICA-MMSJ)
Mexican/PuertoRican
ASC(Redondo-
Entrecanales)Puerto Rican/
Spanish
ASC(KKZ/CMA)
USA
ASC(Entrecanales/
Redondo)Spanish/Puerto
Rican
ASC(Redondo/
Perini)Puerto Rican/
USA
Line Legend:Solid:
Management bycontract orlegislation
Dashed: Nocontractual
Relationship, onlymanagement
ASC(Redondo-
Entrecanales)Puerto Rican/
Spanish
ASC(Redondo-
Entrecanales)Puerto Rican/
Spanish
13Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering• Change Order Process• Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
• Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
14Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Partnering Objectives
• Promotion of Working Relationships Among
Participants
• Promotion of Cooperation and Trust
• Achievement of Common and Individual Objectives on
a Non-confrontational Basis
Initial and Periodical Follow-up Workshops
• Facilitators Retained Though the Partnering Program of
the American Arbitration Association
15Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process• Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
• Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
16Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Change Order ProcessInitial Notice
submited bycontractor
If needed (usually)request for
extension forcontractor tosubmit CCR
ContractorChangeRequest
(CCR)
Contractor mayresubmit Initial
Notice
Change Notice(CN)
ChangeDirective
Change Order
Merit to CCRsignature process
Avoided if possiblesignature process
2-4 weeks
No merit
2-6 monthssignature process Difficult and long
negotiation process
10 days
17Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
• Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
18Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Negotiation Steps The Contractor Asserting a Claim if not Satisfied with the
Outcome of the Change Order
Five Negotiation Steps Before a Claim Becomes a Dispute
• Technical Personnel of the Parties Attempting to Resolve Claims in the Partnering Sessions With Impartiality (At Most 60 Days)
• Claim Submitted to Contractor’s Project Manager and Contracting Officer (At Most 10 Days)
• Claim Referred to Contractor’s Project Executive and Executive Director (At Most 10 Days)
• Claim Determination Submitted within 10 Days by the Contracting Officer to Contractor
• Notice of Disagreement Submitted Within 10 Days by the Contractor to the Contracting Office
19Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Dispute Review Board DRB Consisting of Three Members
• Each of the Authority and the Contractor Selecting Three Nominees
• Each of the Parties Selecting One Individual From the Other’s List of Nominees
• Third Member: Qualified and Impartial Chairperson selected by Mutual Agreement Within 21 Days
Foundation of The DRB May Take More Than Two Months
20Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Processing Disputes Step 1 : Contractor’s Request for Meeting and
Supporting Statement
Step 2: Authority Submitting to the DBR and Contractor, Response to Dispute and Counterclaims
Step 3: Contractor’s Statement Setting Factual and Legal Defense to the Counterclaim
Step 4: DRB Setting Date of Initial Meeting on Dispute
Step 5: DRB Issuing Draft Findings and Recommendations to Both Parties
Step 6: Notification of Miscalculation or Error in the Draft
Step 7 : Final Findings and Recommendations Submitted to Executive Director and Contractor
Step 8 : Executive Director Issuing A Written Decision to Accept or Reject Recommendations
21Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Legal Action
Court Action Filed By Contractor Within 90
Days After Receipt of the Executive Director’s
Decision
Negotiation Time Frame
• 20 Weeks For Claim Resolution Process
• 6 Months for Dispute Resolution Process
22Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication• Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
23Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Enhance the Pros of Duplication
24Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Example of Duplication Parsons Brickerhoff (in Siemens Group),
Responsible of the Management Functions in Terms of Interface Between Systems to Fixed Facilities and Interface Between Fixed Facilities
GMAEC, Owner’s Consultants, Responsible of Schedule and Design Reviews of the ASC’s Work
Result: More Complete Review and a Superior Project
25Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team• STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
26Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Form a Unified Management Team
PRHTA
GMAEC
Siemens
PB
Partnering
Bridge
27Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner• Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
28Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
STTT Contractor’s Fiduciary Relationship With Owner Two Contrasting Perceptions of STTT: Owner
Representative and Contractor
As Owner Representative
• Operations and Maintenance for 5-10 Years Reduced Lifecycle Costs.
• Overseeing the ASC’ s Interface With Each Other & Interface With Systems
• Reviewing ASC ’s Design & Schedule
• Partnering With PRHTA/GMAEC
As Contractor
• Design and Construction of Systems and Vehicles (Major Cost Component of STTT Contract)
• Design and Construction of One Fixed Alignment Section
29Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships• Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
30Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Aid Non-Contractual Relationships
ASC ’s Partnering With Owner Improving Costs and Schedule
ASC ’ s Partnering with STTT Without Contractual Commitment
31Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-
Cultures• Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
32Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Improve Communication and Understanding Between the Multi-Cultures Multi-Cultural Environment : Puerto Rican
Contract Managers and North American Design Managers (Different Contract Languages, Priorities in Objectives)
Multi-Phase Environment: Planning of Next Phases, Design and Construction of Phase I, Preparation for Operation and Maintenance of Phase I
Initial Partnering Meetings and Follow-up Meetings
33Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-
Cultures Initial Meetings• Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
34Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Initial Meetings
Held Between Owner and Each Party With Whom the Owner Has Signed a Contract
2-3 Day-Meetings in a Neutral Location, Facilitated by a Member of the AAA
Objectives
• Discussions of Risks, Concerns, Goals
• Development of Trusting Relationships
35Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Quality Summit Meeting Between All the Parties, Ran By the Tren
Urbano Office
Results of Observations From Quality Summit
• Improve Cross-cultural and Communicational Relationships
• Improve in Drive and Belief in Partnering by Some of the Contractors
• Need Some Human Infrastructure in a very Compressed Time
Lessons Learned from Quality Summit
• Need for a Third Party Facilitator
• Focus on Working Together in Small Groups Instead of Numerous Presentations
• More Interactions Between Parties
36Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-
Cultures Initial Meetings Follow-up Meetings• General Analysis of Partnering Components
General Analysis of Conflict Resolution
37Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Follow-up Meetings
Monthly Partnering Meetings Between Project
Principals Parties Presenting Status Reports and
Meetings Run by Owner’s Top Management
Issues Resolution at a Micro-Management Level
Reduced Now to Quarterly Meetings Preventing
Shortcutting the Regular Resolution Process and
Focusing on Partnering Relationship Issues
38Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Evaluation of Partnering A Clear Champion For Partnering Was not Clearly
Identified in the Pre-Planning Stage
More Faith and Genuine Commitment Need to Be Elicited in the Partnering Process
Follow-up Meetings Could Be Improved if Run by a Third Party
More Emphasis Should Be Done on the Need and Value of Partnering
Need For More Meetings in an Informal Setting
All Management Parties Should Form One United Management Team
Partnering At All Levels (Example, in Field Inspection)
39Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-
Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components
General Analysis of Conflict Resolution
40Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
General Analysis of Partnering Components
Lessons Learned Divided into Three Categories
• Initial Factors : Set at the Beginning of the Project,
Impact Seen at the End of the Project
• Operational Factors: Occurring Throughout the
Project, Affected by Initial Factors
• Resulting Factors : Product of Other Factors
41Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Initial Factors Initial Meetings
• Start Early With a Full Partnering Initialization
• Don’t Cut on Time and Cost at this Stage
• Develop Trust
Education• Use Experienced Employees
• Educate and Train People
Numerous Cultures• Recognize Cultural Differences
Delivery Method• High Commitment to partnering in the Presence of
Different Non-contractual Relationships
42Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Operational Factors Follow-up Partnering Meetings : Maintaining
the Initial Trusting Partnering Relationship Knowledge Transfer: Open Communication for
Knowledge Transfer Between Various Cultures Evaluations: Soft Measures Such as Problem
Solving Methods and Hard Measures Such as Number of Claims
Champions for Objectives: Champions for Quality, Cost, schedule and Partnering
Benefits of Duplication: Extra Cost Versus Greater Quality-Preventing Adversarial Positions and “All is Responsible, Nobody is” Syndrome
Unified Management Team Turnkey Contractor Acting as Part Owner
43Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Resulting Factors
Site Transfer Conflicts: Monitoring Hand-Over
Between Contractors in the Absence of Direct
Contractual Links
Micro-Management: Effective Partnering
Saving on the Resources Needed for Micro-
Management
Claim Management
44Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-
Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components
General Analysis of Conflict Resolution
45Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
General Analysis of Conflict Resolution Insights From Interviews Regarding Conflicts in the Rio
Piedras Section
• Conflicts and Disputes Are Inherent to the Construction Industry
• Owner and Contractor Are Disagreeing Concerning How the Project Is Running
• Mitigation Actions Are Most Effective if Taken early
• Managers Have A Lot of Experience Regarding Conflict Management and They Feel Pretty Confident About Their Negotiation Skills
• Decision-makers Are Not Aware of the Long Term Effects of Their Actions
46Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Outline Tren Urbano Project Story Project Description Procurement Strategy Conflict Management in Tren Urbano
Partnering Change Order Process Dispute Resolution Contract Language
Analysis of Tren Urbano Components Partnering Analysis in Tren Urbano
Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-
Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components
General Analysis of Conflict Resolution
47Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
Summary Partnering and the Success of Innovative
Delivery Methods in a Global Market
Importance of Partnering in Multi-Cultural, Multi-Phase Projects
Partnering Embodied in Initial Meetings, Quality Summit, Follow-Up Meetings
Conclusions and Recommendations
• Contract Language Regarding Conflict Resolution Is Not the Source of Problems
• Inter-phase Conflicts Require Additional efforts
48Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002
References [DTOP, 2000] : Puerto Rico’s Department of Transportation
and Public Works home page (http://www.dtop.gov.pr/english/tu/history.htm) (2000).
[Harpoth, 1999] : Harpoth, Nina. Effective Partnering in an Innovative Procured, Multi-Cultural Project, MS Thesis. MIT Deaprtment of Civil and Environmental Engineering. 1999.
[Peña-Mora et al, 2002] : Peña-Mora, F., Sosa, C., and McCone, S. Introduction to Construction Dispute Resolution. Prentice Hall, New Jersey, 2002
[Rio Piedras Contract, 1997] : Rio Piedras Design-Build Agreement, Phase I of Tren Urbano, Contract No. AC-500083, Rio Piedras Contract: Alignment Section 7, Puerto Rico Highways and Transportation Authority.
[TUI, 1997-8] : Tren Urbano Interviews with Project Participants, (1997-8). Tren Urbano Office and Siemens Transit Team Office, San Juan, Puerto Rico.
[TUQS, 1997] :Tren Urbano Quality Summit, 10/6/97 & 10/7/97, San Juan, Puerto Rico (1997).