Litigations and Disputes in Construction Industry

Ligitations-in-ConstrcutionIndustry

Dr.S.V.Deodhar, Dean and Professor, Sri Vaishnav Institute of Technology and Science, Indore

Disputes in construction industry are increasing very fast. Improper specifications are one of the main reasons for it. If standard specifications are prepared at National level, this problem can be minimized to a considerable extent. Some measures are required to be taken to minimize them.

Introduction

Disputes and litigations in construction industries are increasing at a very large rate in the last few years. Many of the problems can be solved by means of arbitration act, however in most of the cases they are not. The main reason behind may be that parties involved in, may not be getting satisfactory results through a process of arbitration. Even many parties feel that arbitrators are biased and favor one party. In construction industry, there are mainly two possible causes for litigations, poor quality construction or bad contractual arrangements.

An improper specification is one of the reasons for arbitration which leads to litigations. A common practice of cut and paste and prepare specifications is the main reason for it. It makes so many mistakes hence to reach to an amicable solution by any arbitrator becomes difficult if not impossible. Moreover, specifications of various items of construction and construction materials are vital document of contractual process, but mostly given least attention. An experienced contractor, specially a witty contractor always tries to find fault in it and tries to exploit its advantages. Though it may not be wrong, but it is not ethical. Some countries have prepared standard specifications, containing all type of works, anywhere in that country, and are doing well.

A casualty to worker during execution of work is also one of the reasons for work delay which leads to arbitration and litigations in due course. Labor unions though very powerful and active to protect the rights of labor, however they also find themselves in difficulty to include these daily wages workers as member of the labor unions. In case of some accidents, though they try to protect their family members but fail to a considerable extent due to these limitations.

NBM&CW OCTOBER 2013

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