DBIA Dispute Resolution and Claims Management 2

Question 1

What is the primary purpose of a claims notice provision in a design-build contract?

Accepted Answer

To ensure timely notification so the owner can investigate conditions and mitigate damages

Answer

To limit the owner's liability for design errors

Answer

To automatically escalate disputes to arbitration

Answer

To establish the D-B entity's right to stop work

Question 2

How does the design-build delivery method typically reduce the frequency of disputes compared to traditional design-bid-build?

Accepted Answer

By removing the gap between design intent and constructibility that often leads to disputes in traditional delivery

Answer

By eliminating the need for written contracts

Answer

By requiring owners to assume all project risks

Answer

By mandating government arbitration for all disputes

Question 3

What constitutes a 'differing site condition' that may give rise to a claim in a design-build project?

Accepted Answer

Physical conditions at the site that materially differ from those indicated in contract documents or from what is ordinarily encountered

Answer

Owner-requested design changes after contract execution

Answer

Subcontractor disputes about scope of work

Answer

Delays caused by weather events

Question 4

What is the legal distinction between a 'claim' and a 'dispute' in design-build project delivery?

Accepted Answer

A claim is a formal demand for compensation or time, while a dispute arises when that claim is rejected or not resolved

Answer

They are legally identical terms used interchangeably

Answer

A dispute is filed in court while a claim is resolved through arbitration

Answer

Claims apply to design issues while disputes apply to construction issues

Question 5

In DBIA standard documents, which party typically has initial authority to resolve disputes before formal ADR proceedings begin?

Accepted Answer

The Owner's Representative and the Design-Build Entity's Project Manager through direct negotiation

Answer

A third-party arbitrator

Answer

A government oversight agency

Answer

The lead designer on the project

Question 6

What is 'force majeure' as it applies to design-build contract claims?

Accepted Answer

Events beyond the parties' control (such as natural disasters or government actions) that excuse delay or performance

Answer

A clause that allows the owner to terminate the contract without cause

Answer

A pricing escalation clause for material cost increases

Answer

A provision requiring mediation before arbitration

Question 7

What is the purpose of including a 'no damages for delay' clause in a design-build contract?

Accepted Answer

To limit the owner's exposure to monetary damages for delays, though the D-B entity may still receive time extensions

Answer

To ensure the D-B entity cannot claim additional time for owner-caused delays

Answer

To prevent the D-B entity from terminating the contract due to delays

Answer

To automatically trigger liquidated damages if milestones are missed