Dispute Resolution and Claims Management Flashcards
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Read the first 7 Dispute Resolution and Claims Management flashcards as text
What is the preferred first step in the DBIA dispute escalation process when a disagreement arises on a design-build project?
Answer: Direct negotiation between the parties' senior representatives
DBIA standard documents require parties to first attempt direct negotiation between senior representatives before escalating to formal dispute resolution mechanisms.
Which alternative dispute resolution (ADR) method results in a binding decision made by a neutral third party without court involvement?
Answer: Arbitration
Arbitration produces a binding decision from a neutral arbitrator or panel, making it enforceable without going through the court system.
What is a Dispute Review Board (DRB) in the context of design-build projects?
Answer: A panel of neutrals that reviews disputes and issues recommendations or decisions during project execution
A DRB is a standing panel of neutral experts established at project start that reviews disputes as they arise during execution, helping prevent escalation to litigation.
In a design-build project, who typically bears the risk of design deficiencies that result in construction cost overruns?
Answer: The design-build entity
In design-build, the D-B entity assumes single-point responsibility for both design and construction, meaning design deficiencies and resulting cost overruns are the D-B entity's risk.
What does 'partnering' refer to in the context of dispute prevention on design-build projects?
Answer: A structured process to build collaborative relationships and shared goals among project stakeholders
Partnering is a structured process involving workshops and agreements to foster collaboration, shared goals, and open communication, which helps prevent disputes from arising.
Under DBIA standard contract documents, what is the typical timeframe within which a design-build entity must provide written notice of a claim for additional compensation or time?
Answer: Within 21 days of the event giving rise to the claim
DBIA standard documents typically require written notice of a claim within 21 days of the occurrence or discovery of the event giving rise to the claim.
What is mediation in the context of construction dispute resolution?
Answer: A non-binding process where a neutral facilitator helps parties reach a voluntary settlement
Mediation is a non-binding ADR process where a neutral mediator facilitates negotiation between parties, helping them reach a voluntary settlement without issuing a binding decision.