Page 260 - Sustainable On-Site CHP Systems Design, Construction, and Operations

CHP Construction 233

reports, and weather data. Also important are accurate records on change orders, shop
drawings, and payment applications. Job records are the principal source of evidence for
resolving disputes and minimizing the potential for claims.
In the event delay or disruption is being claimed by the contractor, the owner’s job-site
staff should attempt to prepare internally an analysis of the causes and effects of the prob-
lems. If records are well-kept, they will assist in the practice of preventive contract admin-
istration. You will not only be well informed about the contract’s performance history, but
will also be better able to anticipate problems before they arise or become critical.

Innovative Dispute Solution Techniques
Despite all the precautions taken by the parties in negotiating the items of work and
detailed project requirements, disputes can and do arise. Because litigation and arbi-
tration are generally in no party’s best interest, an owner should consider alternative
dispute resolution techniques that are designed to handle the dispute quickly and
cost-effectively. However, the first, best, and typically most cost-effective step is to put
emotions aside, sit down, discuss the issues and arrive at a fair, reasonable, and equi-
table resolution of the dispute.

Mediation
If the parties cannot come to agreement on their own, mediation is a process that is
being increasingly used in construction disputes. The mediator acts as a facilitator but
generally has no authority to render binding decisions. In order for a mediation to suc-
ceed, the process demands full participation of all parties, represented by individuals
with settlement authority. In addition, it is critical for the parties to have an unbiased
decision maker involved to promote the settlement of the case.

Mini-Trial
The concept of a mini-trial has also gained increasing acceptance in complex litigation.
The name is somewhat of a misnomer in that a mini-trial is not a trial at all. Instead it is
a structured settlement procedure and is usually voluntary and nonbinding. In essence,
the parties present the salient elements of their claim during a limited period of time.
A summary of the evidence and relevant law is then presented and the “decision
makers,” consisting of a principal of each disputing party and a neutral advisor, attempt
to render an opinion.

Project Dispute Board
Another method of resolving disputes on the construction of CHP facilities is to estab-
lish, at the outset of a project, an individual or team of individuals capable of analyzing
the technical and legal merits of project disputes. This concept has worked well on large
construction projects, particularly if the dispute board meets regularly and is apprised
of the CHP’s project progress.

Conclusions
Owner-operators, developers, and contracted builders of CHP facilities should recog-
nize that by carefully reviewing the project before construction starts risks will be iden-
tified and contingencies made for dealing with such risks during contract performance.