Dispute Resolution and Claims Management Flashcards
7 cards from real DBIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Dispute Resolution and Claims Management flashcards as text
What does 'reservation of rights' mean when a design-build entity submits a claim?
Answer: The D-B entity preserves its right to seek additional compensation or time while continuing to perform the work
Reservation of rights allows the D-B entity to continue performing contested work while preserving its contractual right to seek compensation or time adjustments through the claims process.
What is the function of a neutral evaluator in early dispute resolution on design-build projects?
Answer: To provide a non-binding expert opinion on a dispute to help parties assess their positions and negotiate a settlement
A neutral evaluator provides an objective, non-binding assessment of a dispute, helping both parties understand the strengths and weaknesses of their positions to facilitate voluntary settlement.
What is 'pass-through' litigation in the context of design-build subcontractor claims?
Answer: A process where the D-B entity asserts a subcontractor's claim against the owner on the subcontractor's behalf
Pass-through claims allow a D-B entity to assert a subcontractor's claim against the owner, since subcontractors have no direct contract with the owner but may have suffered damages from owner actions.
Which of the following best describes the 'economic loss rule' as it affects design-build disputes?
Answer: A legal doctrine limiting tort recovery for purely economic losses, requiring parties to rely on contract remedies
The economic loss rule generally bars tort claims for purely economic losses, requiring parties to rely on contractual remedies, which affects how design-build disputes are structured and what claims are available.
What is the significance of a 'mutual waiver of consequential damages' provision in a DBIA standard contract?
Answer: Both parties agree to waive claims for indirect damages like lost profits and loss of use, limiting recovery to direct damages
A mutual waiver of consequential damages limits both parties' exposure to indirect losses, providing cost certainty and reducing the stakes of disputes while preserving claims for direct damages.
In design-build dispute resolution, what is the typical hierarchy of escalation in DBIA standard documents?
Answer: Direct negotiation → Mediation → Arbitration or Litigation
DBIA standard documents follow a tiered escalation: first direct negotiation between senior representatives, then mediation with a neutral, then binding arbitration or litigation if still unresolved.
What role does comprehensive project documentation play in design-build claims management?
Answer: Contemporaneous records, RFIs, change orders, and meeting minutes are critical evidence for establishing the facts of a claim
Contemporaneous documentation including daily reports, RFIs, correspondence, and change orders provides critical factual evidence that supports or refutes claims and is essential to dispute resolution.