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Resolve Business Disputes and Select and Prepare a Construction Contract. Lesson Three. Todays Lesson. Continue contract activities, which will incorporate dispute resolution Complaints and Disputes from a Builders perspective A break up and reference to contracts and solutions.
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Resolve Business Disputes and Select and Prepare a Construction Contract Lesson Three Cert IV - M. S. Martin January 2012
Todays Lesson • Continue contract activities, which will incorporate dispute resolution • Complaints and Disputes from a Builders perspective • A break up and reference to contracts and solutions Cert IV - M. S. Martin February 2012
Lesson 3 – Contracts / Disputes Chapter 1 – Contract Law Cert IV - M. S. Martin January 2012
The Basics of Contract LawChapter One – from page 2 • For the lawto recognise a contract,three factors are required to be present: • an offer • an acceptance • and a consideration Cert IV - M. S. Martin January 2012
Activity Three • If the builder in Activity 2 said they had a contract with the carpenter and wanted to force the carpenter to do the job for the agreed price or sue the carpenter for damages - what are the arguments the carpenter or his lawyer could make in court in relation to a) the offer, b) the acceptance and c) the consideration. Write your answers…….. ? Cert IV - M. S. Martin January 2012
Disagreements & Disputesfrom the Builders perspective Cert IV - M. S. Martin January 2012
Disputes & Complaints • Our Objectives - list and group potential causes of complaints and disputes - describe the actions available - sources of external advice available - working plan for a job to be pro-active in your management techniques - establish a contingency plan to accommodate unforeseen complaints
Complaints • During construction they will arise • You as the builder or site manager, need to avoid delays & costs • You Should take precautions to avoid or minimise disputes & complaints
Complaints continued • There will be warning signs, for example - repeated requests to rectify a problem - poor workmanship disagreements - disagreements with costs of variations - or a job taking to long HOW HAS THIS HAPPENED ? Largely from a lack of communication
Complaints continued • It’s important to stop the complaint from becoming a dispute • To do this you have to communicate • Which can save a lot of time & money • And also promotes you as a professional
Looking at Contracts • They must be signed by both parties. • Can be for any type of job. • Contain specification & clauses. Or reference to.. • Clauses can be in standard form or include special inclusions. • OFT, HIA, etc. contracts now include clauses for dispute resolution. • Contracts are a legal document.
Types of Complaint. • Different types occur during construction. • Often caused by lack of communication. • You also need to understand, basics of contracts, your obligation, clients obligation & the conditions of contract.
Understanding the conditions • Look over $25,000.00 plus contract from P7 • Review conditions etc. Cert IV - M. S. Martin January 2012
Builder & Proprietor Disputes • Between the contractor (you) & the Proprietor (your client). • Again these complaints arise from lack of communication. • Types of disputes can be ? What? - variations - colours - time delays - PC items - poor workmanship
Builder & Union Disputes • Usually occurs if you are out of date or ignorant of conditions and / or agreements • Can start from minor things • Two things could happen • Stop work, either for meetings or longer periods • Fines, or shut down of site, if WorkCover became involved. Remember these days the unions advocate themselves as safety watchdogs
Builder & Sub-contractor disputes • These often occur again due to some lack of communication • Some types that may arise are • Poor workmanship • Lack of supervision • Payments • Any others ?
Actions available for disputes • You could be faced with disputes, no matter how small • What do you do ? • Try and resolve the dispute by consultation & communication Call all parties concerned and try and reach a mutual agreement To be continued next week
References • Competency text for ‘Resolve Business Disputes and Select and Prepare a Construction Contract’ • Reference text ‘O-Ten Management One 2182G’ • Web sites as listed below: http://www.fairtrading.nsw.gov.au/default.html http://en.wikipedia.org/wiki/Arbitration http://www.cttt.nsw.gov.au/Dispute_resolution.html http://www.michaelatkinson.com.au/joom/ Cert IV - M. S. Martin January 2012