Unsurprisingly, disputes and arbitration work is on the increase. “There is an increase in tensions between joint venture partners and parties to contracts,” Harris says. “There’s a lot more instances of parties trying to get out of contracts or taking a harder line as a result of the current economic situation.”
Needless to say, prevention is the best cure for disputes and Brells says it is important to implement an effective management of both contract and project. “Both sides of a project need to be aware of the ‘ins and outs’ of their contract. They need to be aware of where their particular risks lie within the contract, and to manage those risks as best as possible, and what their entitlements are under the contract. For instance, if there is a notice provision in the contract, be aware of its time limitations and your responsibilities to meet it,” he says.
“If there are project control requirements, use them and manage the project with them. They have been included for a reason. So often we see where the focus has been on getting the project built and contract administration takes a back seat.”