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 Law Chapter One – from page 2 For the law to 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 & Disputes from 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, 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: ml Cert IV - M. S. Martin January 2012