How to avoid costly claims and disputes
John Wong Weng Long
Claims by contractors are often seen as a contributing factor to project budgets being exceeded. The majority of such claims centre on claims arising from delays suffered by contractors. It may be a common perception that claims arise from claim-conscious contractors. However, it would not be a surprise that the majority of such claims originate from root causes which are within the control of the Employer and its consultants and thus can be avoided. Where claims cannot be avoided and that disputes are imminent, arbitration is often employed to resolve such disputes but not without a heavy price tag. In these circumstances, costly arbitrations can be avoided if both parties to the disputes are willing to seek and be guided by the opinion/decision of an independent claims expert as an alternative to arbitration. Such opinion/decision may shed light on the partiess true liability or entitlement in respect of the claims so as to resolve the disputes in an efficient and economical manner without resorting to arbitration.
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