Conflict Management in the Construction Industry

Conflict Management in the social organization IndustryThe nature of the plait effort in Hong Kong is such(prenominal) that there is an existing skirmish surrounded by the major body structure work out participants, possessors, excogitation professionals and mystifyors. The building industry is well-known for high levels of skirmishs and chall(a)enges. mental synthesis is construction, and no matter how complicated the technology. It is in whatever case a find out-based industry with distributively project being unique. in spite of appearance a project life cycle, a large number of separate firm be involved. ruins by one party atomic number 50 affect those engaged in a project and, as black market often takes substantial plosive speech sounds during which national economic circumstances can change, it is unavoidable that dis put togethere will arise.From the above-mentioned scenario, it should not be surprised that the techniques of troth charge and strife re solution in construction industry atomic number 18 more fixed, comp atomic number 18d to the industry, one powerfulness be inclined to ask the questions as to whether there is individually hope for the industry in endeavouring to reduce the serious and extent of troths and contends? gibe to Fenn et al(1997), employment can be managed, possibly to point of forbiding it from leading to dispute whereas, dispute require resolution and , therefore, argon associated with distinct excusable issue.The purpose of this paper will firstly bring out the commentary of mesh management and dispute resolution. And also identify the causes of the conflicts and disputes in Hong Kong construction industry. Fin onlyy, this study will also identify the way of conformityal conflict management and the dispute resolution methods to be used.2. Conflict Management in Construction Industry2.1 The definition of conflict managementConflict may be defined as a contest amidst people with opposi ng needs, ideas, beliefs, values or goal. Conflict on team is unavoidable however, the results of conflict are not predetermined. Conflict might increase and lead to non-productive results or conflict can be beneficially thawd and lead to quality final products.Therefore, learning to manage conflict is essential to a superior team. Though very few people go looking for conflict, more often than not. Conflict results because of abstracted communication between people with regard to their needs, ideas, beliefs, goals, or values. Conflict management is the principle that all conflicts cannot consequentially be resolved, just now learning how to manage conflicts can decrease the odds of non-productive escalation.According to Algert, N.E., and Watson, K. (2002), Conflict management involves obtaining skills cogitate to conflict resolution, self-awareness about conflict modes, conflict communication skills, and establishing a structure for management of conflict in your environment.2 .2 The causes of conflict in constructionConstruction is significantly antithetic from manufacturing, in which the same franks are produced a thousand judgment of convictions. Also, construction does not grant for the change of variable while holding the epoch out fixed in order to study its effects. The nature of the construction referred to earlier so conflicts among owners, design professionals and contractors are general.To suggest that these parties are prone to confrontational interaction and conflict would be a major statement in the construction industry.Owners are crimson arguing with their design professionals over design service justify of errors and neglect in design services rendered, aesthetic considerations and bud line up overruns.(p.4-white)Accordingly, Howell et.al (1998, cited by Vorster 1993) proposed a nomenclature of elements that take up four causes behind conflict in the construction environmentIn fatten up scope definitionThe design professionals responsibility to define and design the project scope so as to meet the owners functional, budgetary, time and environmental project criteria. When the design professional fails to meet their responsibility, the owner is almost always dissatisfied with the result, with the effect that unforgiving correspondence soon ensues between the parties. Also, when the scope of the work is un distinctly, this presents an unhappy relation for future between the owner and the contractor, arguing about the scope and quality of the work, and whether in fact the work is properly defined by the contract documents prepared by the design professional.Inappropriate contract typeContracts are endemic as causes of conflict within the construction industry almost every stage of the construction process is regulate by an agreement of some sort. Some of the areas of contract dispute are breach of contract in contract clause interpretation, inspection of work clauses, indemnity clauses, payment of supplies, and liability to third parties, just to divulge a few possible areas of contract dispute.Poor communicationInfrastructures are unique products with more entangled production process than other and most of building products are a combined effort of some(prenominal) peoples or organization. So legion(predicate) professionals beat contribution to do a building in sundry(a) capacities. Among construction team members, each may have different aim in relation to their profession, but their main aim should be to complete the project within a given plan. Conflict between team members may arise when their objectives are inconsistent. Also, their interpretations of contract documents, terms, and conditions can diverge, leading to discrepancies and conflict. In short, all causes of conflict within an area are inter link up.UncertaintyFor external a) Environmental concerns b) Social impacts c) Economicsd) Political risks e) withstand f) Regulationg) Unforeseen come in condition.For int ernal a) Error in design b) Construction methods and workmanshipIn figure 10.3 which is one modelling of what the owner should consider when identifying potential conflicts. We can identify which of them may be realized at the interfaces among the multiple participants in an agency construction management delivery placement. Certain conflicts in the kind among the owner, designer, CM and trade contractor can be eliminated in various situations if a different delivery system is selected.(P.205-White)2.3 Methods of conflict management used in construction industry in HKIn the construction industry, ask anyone if they completed a construction project without any conflict. The answer 100% of the time will be NO. The successful project managers must be implement strategies to avoid or monitor conflict in their construction project.The following rough-cut steps are used by the project managers when developing a successful conflict managementConflict identificationConflict depth psyc hologyDesign and implementation of a conflict managementMonitoring and recapitulation of the conflict management.(P.202-White)Prevention is the beat out method in the management of the conflict in construction industry. The methods includeDispute review boards or advisorsNegotiationcalibre (Total quality management and quality assurance)Procurement systemswhich are all non-blinding process.Baden-Hellard (1988) emphasized that construction industry has a built-in potential for conflict arising from the differences always present in values, principles and interest. Thus, when differences arises from unforeseen events, no matter how well the clients, design team and contractors have managed the project, better methods of resolving the differences are needed.Dispute review boards or advisorsIt is virtually impossible to complete a large construction project without having any disputes develop between the parties. The DRB is a panel of two nonsubjective individuals who are selected by the parties to the construction contract, usually the project owner and the general contractor. The project owner will stipulate in the specifications for bidding the project.DBR provide the processes and mechanisms to not only help to settle disputes but also can provide a method to prevent the potential conflict from ever happening. The potential conflict to the DRB means that plausible argument at each construction stages and the quality of the presentation of claims.The first meeting of the DRB usually takes place well before the beginning of the construction project and will continue to meet until the DRB members are well-known all of the aspects of the project. After the project begins, each DRB will usually meet on a regularly scheduled basic such as once each month or once each quarter, etc. Besides, site dress down can ne made depending on the requirements of the project.NegotiationNegotiation needs to be carrying out to resolve the conflict before it reached a more seri ous stage and change into dispute. The parties are required to semen together and approach an agreeable settlement through communication.The following two example shown a impartial negotiation between the main contractor(MC) and a subcontractor(SC) who is unable to meet the objective in the contract.Example ASC I will not be able to off this process on time.MC You must be finish theses according the time schedule.SC I need three supernumerary weeks to finish it.MCYou cannot have extra three weeks.SC If I do not get three weeks, i can not complete this process on time.MCNo, you will complete as scheduled, if you really cannot finish it, we will collect damage and replace you.The example A is a position-based type of negotiation which will go around in circle until one of parties abandons its position. It is not clear why the parties are even arguing.Example B wedge shape I will not be able to finish this process on time.MC What are the reasons and why can you not finish as sched uled?SUB My supplier will not able to deliver the materials until next week so I need three extra weeks to finish it.MC You should know the schedule is very tight for this project. Are there any other suppliers who can deliver on time?SUB Yes, but the suppliers are more expensive than the damages given by finishing late.MC Although you are responsible for reaching the target, I also understand your predicament. Actually, I know some other suppliers that might be able to solve these problems and I will contact them as soon as possible.The example B is an interest-based type of negotiation which can be reached a mutually agreeable solution even the source of the conflict is uncovered.According to these two examples, a successful negotiation should result in a solution pleasurable to both parties that will not damage their descent and implies collaboration, assert and common objectives.Quality (Total quality management (TQM) or assurance)According to Gardiner et al (1992), the most confliction stages are identified within the organization, well followed by the issue of quality and control. One of the most confliction stages is the quality issue so a good and suitable quality management or control system should be issued. It can reduce the frequence of conflict.TQM is an extensive management system whichFocuses on meeting owners needs by providing quality services at a comprise that provides value to the ownersIs compel by the quest for continuous improvement in all operationsUnderstand everyone in the organizationObserve an organization as an internal system with a common objective rather than as individual parties acting to maximize their own murdersEmphasize teamwork and a high level of workers.Procurement systemsThe procurement system is one of most effective methods in stripe of conflict so it should be located in the earlier stage of the project life cycle.According to Bennett et al (1990), the procurement system built up the roles and relationships, which constitute the organization. It establishes the overall management structure and systems, which helps to form the overall values and styles of the project.The Procurement System for Construction provides stake for woof of appropriate procurement and contract strategies, and nomination of an appropriate Principal in the contractsPreparation of tender documents and contracts based on standard formsSelection of contractors and consultants with proven performance recordsEffective management of contracts, including clause commentaries, sample letters and checklistsMaintenance of an effective performance management system through monitoring and reporting andResolution of contractual claims and disputes.(NSW Government (2000), Procurement system for construction. Available fromNSW Government, NSW Government ProcurementWeb site http//www.nswprocurement.com.au/Procurement-System-for-Construction.aspx Accessed March 13, 2011.)3. Dispute Resolution in Construction Industry3.1 The def inition of Dispute ResolutionDispute resolution is about identifying the root causes of conflict and preventing and managing conflict with the purpose of resolving disputes or conflict during the construction process in order to avoid post-construction claims, litigation, and related be.According to Whitfield(1994), resolve disputation can use all in ceremonial resolution methods such as negotiation and choice dispute resolution(ADR) or formal resolution methods such as litigation and arbitrament.3.2 The causes of dispute in constructionDisputes are often the outcome of ill considered procurement practices, inadequate preparatory formulation and design activity, or poor project and commercial management procedures.If the conflict happened in construction site, all parties are agreed to each other. There is no further conflict because objectives of both party vex same. But if one or both party becomes intransigent, then the conflict may turn to a dispute. In other word, dispute s are come up when parties are unable to manage their conflicts properly. Dispute can be defined as a disagreement between parties in connection with their objectives.Construction trial may create dispute between the parties in construction sites. According to Feld and carper Kaminetzky (1997), failure during the construction phase may includeOverloading.Improper temporary supports.Inadequate planning and execution of construction process. privation of inspection.Insufficient safety factors.Inadequate training of construction workers.Feld, J. and Carper, K. (1997). ConstructionFailure. John Wiley Sons, New York.Cause of client1) Failure to respond in timely manner.2) Inadequate tracing mechanisms for RFI (Request for information).3) Reluctant to check for constructability, clarity and completeness.4) Discrepancies / ambiguities in contract documents.5) Poor communications between and among the parties involved in theproject.6) Failure to appoint an overall project manager.7) last( a) price mentality in engagement of contractors and designers.The absence of team spirit among the participants.8) Deficient management, command and coordination efforts on thepart of the project.Cause of designerFailure to understand its responsibilities under design team contract.Over-design and underestimate the costs involve.Inadequate in open and factual communication.Late information issued and cumbersome approaches to RFIsDesign and specification oversights and errors or omissions resultingfrom uncoordinated civil, structural, architectural, mechanical andelectrical designs.Incompleteness of drawing and specifications.Cause of contractorInadequate contractor management, supervision and coordination.Lack of understanding and agreement in contract procurement.Failure to understand and correctly bid or price the works.Reluctance to seek clarification.Failure to plan and execute the changes of works.Inadequate CPM Scheduling and update requirements. control/ suspension of works. Fenn et al (1997) provides a synopsis of the findings of nine frequently citedstudies of the sources of disputes3.3 Methods of dispute resolution used in construction industry in HKAccording to Carmichael (2002), the step approach to dispute resolution as below.An attempt is made to resolve the dispute at the level at which it occurs, in a reasonable timeIf this fails, involve parties at a higher level with decision making authority, and the potential to settle in the interests of a commercial solutionIf this fails, proceed to an ADR approach using and independent third partyIf this fails, arbitrament or litigation will be used.3.3.1 Informal resolution methodsa) NegotiationNegotiation is a common dispute resolution method, which we all are using in every day. There is no neutral third party for the negotiation, only the disputants. It is also defined as a means to reach mutual agreement through communication, according to Down, L.J. (2009), (p.140-white)Negotiation is considered by most appropriate way to resolve any dispute in construction industry. It was because negotiation is not expensive and can be maintained relationship with the related parties.However, there are also negative sides of negotiation. For example, if the related parties negotiated a long and protected period of discussion, the negotiation will be fail because they are not blinding. Besides, it is an informal resolution method, it can allow any surprise issue or irrelevant points rising.b) Alternative Dispute Resolution (ADR)ADR is a collective term used to describe methods of resolving disputes which are alternatives to litigation and arbitration and which usually offer a less expensive solution.For exampleMediation This has appeared as an increasingly used form of dispute resolution, involving a neutral third party working to facilitate effective negotiations to enable a mutually acceptable settlement.In mediation, the parties explore options, measuring the strengths and weaknesses o f their respective cases.Mediation can save a great merchandise of time and cost in resolving a dispute and can also help the parties to re-establish trust and prevent damage to ongoing relationships.Adjudication This is a quick and relatively inexpensive way of resolving a dispute.The adjudicators decision is normally upheld by the dallys and so it is important to ensure that all the relevant facts are put in front of the adjudicator.Adjudication does not necessarily achieve final settlement of a dispute because either of the parties has the right to have the same dispute heard afresh in court.However, experience shows that the majority of adjudication decisions are accepted by the parties as the final result.(Powell, J. David. 2005. Boundary Dispute Resolution in England Wales Surveyors and Lawyers Working together to Resolve Problems. Proceedings of Cairo Egypt.)Because of the following potential advantages, it is worth considering using ADR early in a lawsuit or even before you files a lawsuit.Advantages of ADRBetter communicationContinued business relationshipMore options for settlementReduced costs in achieving settlementConfidentiallyControl of outcome and the process.3.3.2 starchy resolution methodsa) LitigationOn occasions, alternative dispute resolution procedures are not successful in resolving disputes, resulting with the parties resorting to formal litigation through the courts.According to Whitfield(1994), the process of litigation is from the issue of a writ to a hearing and then on to a judgment. One of the failures of the legal process has been the speed with which solicitors have been prepared to issue writ. After writ has been issue, the plaintiff cannot simply withdraw his writ and forget the matter. If he did so, the counterclaim would be found against him along with the cost.The related construction companies need to provide litigation support services for both formal litigation and alternative dispute resolution as followsProgramme tick analysisForensic researchPreparation of statements of claim and statements of defenceParalegal support.b) arbitrationAccording to Ashworth (2005), Arbitration is a legal technique for the resolution of dispute outside the courts. The parties refer the dispute to a neutral, wise(p) person (arbitrator or arbitral tribunal) who then gives the final decision (award) to which both the parties agree.Arbitration, in lieu of court proceedings, as the last resort to resolving disputes in construction contracts has been commonly used in Hong Kong as well as internationally.Although intended to be a less formal and more flexible alternative to litigation, arbitration can be as thorough and time-consuming as litigation, especially for construction disputes.The related companies should be employ the expertise in representing them in arbitration proceedings and handling the whole arbitration process from the appointment of arbitrators, drafting of pleadings, dealing with interlocutory pr oceedings through to the hearing stage and beyond.Where necessary, lawyers who undergo in construction disputes to provide the most comprehensive services to the company in arbitration.4. Conclusion individually construction projects are unique and complex undertakings. A unique set of drawings and specifications are used to describe each construction stages. The drawings and related documents generally performed by a general contractor and several subcontractors, many of whom have not work together previously. The unique aspects of each project and the unique constitution of each construction team are common reasons for disagreements to occur.Disputes can be generated in any environment indeed, conflict can occur whenever two individuals try to work together. These disputes often concern topics such as changes, differing site conditions, delays, and payments.Many researchers had attempted to determine the causes of conflict and disputes within the construction industry.Besides, H. Murray Hohns (1979) leads to the conclusion that the specific causes of the conflict and dispute can be largely traced to the following five sourcesErrors, defects or omissions in contract documentsUnderestimation of the cost by the client, the contractor, or bothChanges in conditions, (e.g. unforeseen ground conditions)Claims from end-users (legal rights of owners and tenants)People involved in the construction process.When confliction is arise in the construction industry, the importance of proper conflict recovery method and compliance with formal procedures cannot be over-stressed. If disputes proceedings become unavoidable, it should be some comfort to know that proper alternative dispute resolution will be a favorable condition rather than a drawback.