Project Management Institute

Reducing or eliminating construction claims

a new contracting process (NCP)

Litigation has traditionally been a large part of the cost of construction, ranking second to personal liability as a source of litigation in North America.This is largely due to poor processes and wasteful contracting.The New Contracting Process (NCP) is an attempt to lower litigation costs by addressing the process of risk apportionment and approach to mediation in written contracts.There are four main elements to the NCP in the formation and management of construction contracts: prequalifying bidders, apportioning risks, approaching mediation proactively, and finishing contracts more efficiently.Using the NCP should result in fewer disputes, fewer contract failures, better working relationships, and ultimately lower construction costs and improve ability to construct a quality facility.
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