Project Management Institute

Contract disputes

part 2, dispute avoidance

Managing projects inevitably means encountering disputes large and small. As the second installment in an ongoing discussion about how construction industry organizations can find alternative solutions for resolving project disputes, this article examines techniques for anticipating disputes and identifying impending disputes. In doing so, it overviews the traditional partnership approach used on construction projects, explaining how project management is changing this approach and noting how the project manager fits into the new approach. It looks at the US government's new focus on issuing contracts that involve project management oversight. It defines the partnering relationship and identifies the key elements involved in achieving successful partnerships and the reasons which prevent successful partnerships. It also suggests how modern approaches to partnering differ from the traditional approach. It profiles two examples of troubled construction projects. It then outlines the five warning signs that projects are encountering major problems, detailing how project managers can analyze and interpret these warning signs.
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