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;Chapter 8 Dispute Resolution, Arbitration and Claim;;Chapter 8 New Words;Chapter 8 New Words;Chapter 8 Expressions Terms;8.1 Conflict and Dispute;8.1 Conflict and Dispute ;8.1 Conflict and Dispute ;8.1 Conflict and Dispute ;8.2 Resolution of Disputes;Five mechanisms can be adopted to avoid or settle disputes:; Unfair shifting of risk is usually detrimental to the project itself. By shifting unforeseeable risks to the contractor, the employer would face two possible scenarios: “The first is that the contractor will build a contingency into the contract price to cover the risks. The second is that the contractor will not have a contingency and will get into financial trouble. Unfair shifting of risk can result in a party having to spend time and effort looking for ways to stay alive on the project, usually to the detriment of the project itself. ” (Steen, 1994:19) An equitable contract serves as the first move to create a cooperative atmosphere among parties concerned. ;A contract should include clauses for dealing with potential disputes and claims at the earliest possible stage in a project. The minimum requirement for dispute provisions is to provide resolution mechanisms up to arbitration. Drafting dispute resolution clauses at the inception of a construction project can considerably reduce the risk of delay and the rise of costs later. ;Team building, also called partnering, is a project approach designed to allow the design and construction process to be performed within an environment of mutual trust, commitment to shared goals, and open communication among all parties, minimizing disputes and divisive claims. Though partnering may require more manpower and effort up front, it is worthwhile for a successful project to shake off the yoke of litigation and claims.;When disputes arise and the parties cannot reach an agreement by negotiation, an effective way to minimize the problems caused by disputes is to have a neutral party to analyze issues and facilita
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