Step Up Dispute Resolution

Mobile technology solutions are regularly becoming more prevalent in construction and infra-structure projects. They’re being utilized in many ways, including tracking workforces, monitoring equipment and recording safety observations. Solutions like daily reports not only have the ability to capture specifics from a project site in real time, but also enable organizations to overcome many of the challenges they face in protecting their company from claims. It is imperative that poor documentation is addressed and corrected within every organization in an effort to protect the company.

Managers can use the idea of mobile documentation to correctly identify events as they occur on the go, on the jobsite and in a meeting. To properly protect your company, team and project, managers can record the ongoing steps and interactions during the project, should the information be necessary to support a case. The fact of the matter is that disputes occur frequently in construction. According to a 2011 study on common disputes on infrastructure projects, 49 percent of respondents listed changes in scope of work as a primary cause of disputes and 48 percent attributed them to scheduling and time. The key is to maintain the necessary project documentation to support your claim or defense that backs up any of these types of issues that arise.

Many construction contracts, especially government ones, require companies to maintain complete project-cost records. These records could be subject to audit in the event of a claim for a change order. With the increased tendency to respond to delays with liquidated damages and/or false claims of material or code violations, detailed records are truly the only viable ways to support the opposition of such claims.

It’s also important to keep in mind that the size and type of a project will certainly impact the amount of documentation that will be maintained. Larger projects require greater care in the preparation and maintenance of project documents, while smaller projects may not be economically cost effective to support such extensive documentation. However, before a project is commenced, you should review your basic checklist and determine a documentation policy for the project at hand.

Being able to obtain clear and accurate documentation can facilitate problem resolution and fair allocation of financial responsibility. This will help companies avoid costly damages for mistakes that are not their fault if a problem does escalate.

The litigation process usually takes place long after the project work was performed. Disputes that evolve into litigation generally occur due to contract disputes, defective construction, accidents and injury and property loss. Proper documentation plays a significant role in claims resolution and claims avoidance. As long as companies can utilize good field documentation, they will likely prevail in claims and disputes. Companies can now create reliable documentation of project reality to avoid or prevail in construction claims and litigation. There is no doubt that real-time documentation has redefined the role of field documentation in risk management and project management.