Research Proposal E Construction Dispute Model Construction Essay

Research Proposal E Construction broil mystify Construction EssayConstruction constancy can non avoid from differences as many a(prenominal) parties complicated in one industry. All the parties insert remainder effect mechanisms into the cause in the hope that the remainders can be avoided or lick as quickly as they can as they arise. If strifes be not managed properly, they course to drag on and escalate to cause excogitates delays and ultimately done for(p) the relationships. There is now a wide armoury of dispute firmness of purpose methods available for firmness of purpose grammatical formulation disputes. The most popular appear of these cosmos judicial proceeding and alternative dispute resolve (ADR) processes such as arbitration, mediation, and propitiation. These dispute result processes suffer two key evils, which arise from the occurrence that these processes further come into play after a dispute has arisen. One detriment is that, during the di spute resolution process, trustingness between the parties whitethorn be distressingly tested, or even up destroyed. The other injustice is that the prison term and cost of resolve a dispute may affect the expected pop out gains of parties concerned. It is ingrained in body structure industry to adopt an anticipative turn up to management. Since disputes dumbfound been one of the major factors affecting cost and time, it is necessary to ready the salmagundi of dispute from the crook law of nature cases and then the e-CDM can be the implement/database to prevent the conflicts or disputes at any demonstrates of twirl. By having primitive fellowship and cultivation in this tool/database, it result definitely avail the go through manager and sign on manager to anticipate problems at an ahead of time exhibit of the be sick without going through any other option contention Resolution method which will cost extra notes on the top of the project cost.INTRODUC TIONMalaysia has been resurrecting rapidly in tandem and racing a head to become industrialised nation. Undoubtedly, the building and social organization industry ar instrumental as the driving forces to contribute towards realising this aspiration. The facial expression industries are expected to play a vital role by contribution of 11.2% to the gross domestic product (GDP) in 2013.1According to CIDB headsman Executive Datuk Sri Dr. Judin Abdul Karim, the gimmick industry is expected to secure RM 120bil worth of the project in 2013.2In magnitude to achieve this encouraging but gainsay target, the Government and the private sector must work closely unneurotic to ensure projects under the Economic Transformation Program (ETP), the Entry locate Project (EPP), project under the 5 corridors and the Greater Kuala Lumpur and Klang Valley are implemented in the timely manner to avoid any delays that would emergence cost.The construction industry in Malaysia is fast growing and in gently of the economy uncertainty, the world is now facing, striking challenges face players in the industry. Dispute amongst parties involved in the industry are unavoidable. It would be impossible to prepare an environment where the industry would not be affected but great effort should be expended to minimize the effect that would be failing the industry. To do so, it is authorized that disputes be resolved in the most expedient and scotch manner to enable parties in the industry to move forward without macrocosm badly affected.BACKGROUND STUDYModern day construction projects depart from simple houses for individuals to complex infrastructure projects for governments. Some construction projects may even involve go after border movement of re seeds and not limited to the realise of a unmarried jurisdiction. A variety of factors, including, unfair allocation of risks, quadruple start outs, unrealistic expectations and schedules, poorly drafted or short-handed contr act documents, design omissions, tighter funding, the overleap of experienced personnel, communication problems, and even the state of the economy, add to the complexness of construction projects. As a result, construction projects are a breeding commonwealth for contractual dispute.Cooke J in Canterbury Pipe Lines Ltd v Christchurch Drainage card3said Building contracts have been traditionally a fertile source of disputes The enunciation aptly summarizes the very nature of construction industry as an industry disreputable for complex disputes.4The primary cause of such disputes arises from inadequate legal knowledge.5Majority of construction practitioners comes from technical engineering and architectural soil without adequate legal knowledge in contracts and this has led to numerous disputes in construction contracts.Lack of knowledge in construction laws by construction players has been the leading cause of dispute. Employers, Consultants and slim downors though with years of experiences in the industry are usually inadequacying of the legal knowledge and understanding on the routine and effects of various clauses in construction contracts in general and handling dispute. The lacking in understanding the legal and contractual aspects of contract may be caused by not having the experience to undergo the process itself or just plain ignorance of the topic overridden by over-zealous attitude of churning maximum profits and in the understanding that legal experts are there to house all the required advice and service. Lack of knowledge in construction law will lead to wrong interpretation of contracts in which the party tends to gain trivial matters to the dispute.Construction industry cannot avoid from disputes as many parties involved in one industry. All the parties insert dispute resolution mechanisms into the contract in the hope that the disputes can be avoided or solved as quickly as they can as they arise. If disputes are not managed properl y, they tend to drag on and escalate to cause projects delays and ultimately ruined the relationships. maestro Denning6, when commenting on construction disputes, is quoted as sayingOne of the greatest threats to cashflow is the incidence of disputes. Resolving them by litigation is frequently lengthy and expensive. Arbitration in the construction context is often as bad or worsenedAccording to Hibberd and Newman7, litigation gains an unpopular name when time goes on. They quote that A substantial majority (70%) suggested the whole system takes too long, whilst almost 30% suggested that the costs of litigation are far too high. As the litigation cannot solve dispute effectively, arbitration had been introduced. Professionals believed that arbitration can solve the problems without ignoring the important desire of clients. Most of the clients depend on those who know contract correct than them. They hope these professional can help them with the lowest cost and high-speed way to solve the problem.There is much truth in the aging adage that prevention is better than cure. The various dispute resolution processes referred to mediation, conciliation and arbitration all suffer two particular disadvantages, which arise from the fact that these processes notwithstanding come into play when a dispute has crystallized. One disadvantage is that, during the dispute resolution process, trust between the parties may be distressingly tested, or even destroyed. The extent to which this occurs is likely to be proportional to the time and cost (in both money and resources) of closure the dispute. As ongoing trust between contracting parties is such an essential ingredient of healthy and in effect(p) project delivery, this can be a significant disadvantage in a go on relationship such as will typically be found in a BOOT project. The longer and more(prenominal) than acrimonious the dispute resolution process, the greater the likelihood that there will be a loss of trust in any continuing relationship.By having a readily accessible resource such as e-Construction Dispute Model (e-CDM) which the parties can access during the course of the project at any construction stages, the impact of disputes is minimized. In contrast to the dispute resolution processes earlier described, e-CDM seek to avoid or minimize the incidence of disputes by a timely, little costly and relatively informal process which takes tail while the work is in progress. Used effectively, they can lead to a reinforcement and enhancement of trust, with a positive impact on the project as construction unfolds.PROBLEM STATEMENTThe construction industry is notorious for high levels of conflicts and disputes. It is a project ground industry with each project cosmos unique. Some construction projects may even involve cross border movement of resources and not limited to the control of a single jurisdiction. A variety of factors, including, unfair allocation unfair allocation of r isks, quaternate contracts, unrealistic expectations and schedules, poorly drafted or inadequate contract documents, design omissions, tighter funding, the lack of experienced personnel, communication problems, and even the state of the economy, add to the complexity of construction projects. As a result, construction projects are a breeding fuse for contractual disputes.8It could be said that the adversarial nature of the construction industry contributes to the germination and manifestation of construction disputes. As such, the construction industry has been at the knife edge of the search for effective and efficient dispute resolution mechanisms. Project procurance and construction disputes are two of the major concerns in the construction industry worldwide.9There is now a wide armoury of dispute resolution methods available for resolving construction disputes. The most popular out of these being litigation and alternative dispute resolution (ADR) processes such as arbitra tion, mediation, and conciliation. These dispute resolution processes suffer two key disadvantages, which arise from the fact that these processes only come into play after a dispute has arisen. One disadvantage is that, during the dispute resolution process, trust between the parties may be sorely tested, or even destroyed. The other disadvantage is that the time and cost of resolving a dispute may affect the expected project gains of parties concerned. In the circumstances, the current trend is to look for methods other than processes such as litigation, arbitration, mediation, and conciliation that could be put in motion before or at least, soon after a conflict has arisen. The aim is to ensure that dispute prevention measures, or at least measures for minimizing the scope of any dispute is put in place before the parties positions have hardened.Traditionally, resolving construction disputes are done through litigation. This can be confirmed by 72 cases related to building contra ct being reported by the Malayan justice journal between 1990 and 2007 and the Current Law Journal which reported about 200 cases of construction related grapples since 2004.10Yet, today the litigation procedures have fallen into disrepute, particularly due to excessive costs, delays, procedural complexity and adversarial attempt.11The earlier question have come out with the new approach by developing eDR model but it only focus on on contractual variations12in construction projects. The lacking of law knowledge in every term of contact still needs to be addressed.It is essential in construction industry to adopt an anticipative approach to management. Since disputes have been one of the major factors affecting cost and time, it is necessary to determine the classification of dispute from the construction law cases and then the e-CDM can be the tool/database to prevent the conflicts or disputes at any stages of construction. By having thorough knowledge and information in this to ol/database, it will definitely help the project manager and contract manager to anticipate problems at an early stage of the project without going through any other Alternative Dispute Resolution method which will cost extra money on the top of the project cost. seek OBJECTIVEThe objective of this employment areTo classification the types of dispute in the Malaysian construction industry base on the related law casesTo develop an e-CDM model as the database for construction industry andTo develop an application of e-CDP prototype/system based on types of the disputes, the parties involved, type of the project, when do the disputes occurred, and standard form of contract for the project.RESEARCH AIMThe research has highlighted the problem statements on poor understanding of contract administration and lack of contractual knowledge toward the most litigious issue in construction. Therefore, the aim of this research is to classify the types of dispute based on related law cases in co nstruction and subsequently propose and develop eCDM tool/database on construction disputes as an alternative way for resolving disputes in construction projects.SCOPE OF STUDIESThis research is limited to the following-a) To construction disputes reported by Malayan Law Journal.b) Cases related to Building Contract in Malaysia.RESEARCH METHODOLOGYBriefly, this research will be carried out with five (5) different stagesIdentifying the research issueLiterature reviewselective information and information collection info and information collectionResearch compendData and information collectionConclusion and recommendationsData and information collectionIdentifying the Research IssueIdentifying the research issue is the very initial stage from the whole research. Initial literature review was done in order to obtain the overview of the particular research topic. In identifying the issue, firstly, it will involves reading on various sources of published materials such as journals, arti cles, seminar papers, cases, previous research papers, or other related research materials, newspapers, magazines and electronic resources as well up as World Wide Web and online e-databases from UM librarys website.13At the same time, discussions with supervisors, lecturers, as well as course mates have been done to gain more ideas and knowledge relating to the topic.Literature ReviewThe second stage in carrying into action a research is literature review. Literature review stage is fundamentally a stage when the researcher will be reading and besides need to criticize on each and every material that has been read. promulgated resources, like books, journals, varies standard form of contract and related statutory are the most helpful sources in this stage. Literature review also will be involving the collection of documents from the secondary data research, such as books, journals, newspapers.14Data and Information CollectionThis stage is data and information collection stage. T his is an important stage towards achieving the objectives of this research. In this stage, the further action is to collect the relevant information based on the secondary data from the published resources. Lexis-Nexis database which provides cases of Malayan Law Journal is the main sources in getting the related cases.Research abridgmentDuring this stage, all of the data collected data, information, ideas, opinions and comments were specifically arranged, analyze and also will be interpreted based on the literature view which will be carried out. This stage also could be called as the heart of the research as from this chapter we can see how the objective has been achieved.Conclusion and recommendationsConclusion and recommendations is the final stage of the research. In this stage the findings will be able to parade the result of the research. A conclusion needs to be drawn in-line with the objectives of the research. At the same time, some appropriate recommendations related to the problems will be do for a better solution in relation to the said problem. oddmentDisputes between parties to construction projects are of great concern to the industry nevertheless, the receptive is dominated by anecdote and hearsay. The study of construction industry disputes, and the causes of those disputes, is essential. In fact, it would seem that effective management action can be taken only if based on reliable evidence and as contract manager it is essential for them to consider all kinds of dispute in construction industry.