Partnering: Tool for Construction Claims Reduction

Abstract

Alternative dispute resolution ~ADR! is a common term in the twenty-first century and especially for those involved in construction projects. Commercial construction projects are also on the rise nationwide as developers acquire more property and transform once barren land into large arenas, skyscrapers, and office buildings. Due to the increase in the demand for general contractors to compete and ‘‘win’’ the best job for the lowest price, dispute resolution is gaining importance in maintaining success for the general contractor by reducing the chance of claims for the contractor and the owner. A form of dispute resolution for construction, which is quite prevalent today, is partnering. Partnering is a process that brings the parties of the construction project together to resolve potential issues. The hypothesis of this paper is that partnering will reduce the overall number and size of claims on a construction project. By providing a framework for resolving the issues early in the construction process, it becomes more likely that conflict will not arise within the parties. The objective of this paper was to determine whether the relationship between partnering in construction projects influences the number and magnitude of claims that are filed or paid by the contractor and owner. Before one can develop an effective partnering methodology, one must understand the major reasons relating to employee dissatisfaction with current partnering methods. This study will provide an insight into partnering and its effects on the number and magnitude of claims as well as suggestions for more effective partnering methodology.