ARE_Dispute_Resolution Flashcards
(20 cards)
What is the role of the architect in payment certification?
To review and certify the contractor’s application for payment to ensure the billed amount reflects work completed.
What is the Initial Decision Maker (IDM)?
The first impartial party to resolve disputes during construction, typically the architect unless otherwise stated in A101.
What are the steps in AIA conflict resolution?
Initial Decision Maker → Mediation → Arbitration or Litigation.
How long does the architect have to respond to a contractor’s claim?
The IDM must provide a decision within 10 days after the claim is filed.
How long does a party have to file a claim per A201?
Within 21 days of discovering the issue, and not later than 10 years after substantial completion.
Can a contractor file a claim directly against the architect?
No. Contractors must make claims against the owner, who may in turn make a claim against the architect.
What is mediation in construction disputes?
A non-binding process using a neutral third party to help the contractor and owner reach an agreement.
Who pays for mediation?
Both parties share the cost equally.
What is arbitration?
A binding dispute resolution process where a neutral arbitrator hears the case and makes a final decision.
When is arbitration binding?
Only if both parties agreed to arbitration in advance, typically in Article 6 of A101.
Why is arbitration often preferred over litigation?
It’s generally faster, less expensive, and handled by construction-knowledgeable arbitrators.
What is litigation?
Court-based legal dispute resolution that is public, costly, and time-consuming.
What are the risks of using litigation?
It’s public record, expensive, and often slow.
What is proactive contract administration?
The practice of actively managing and documenting the construction phase to prevent disputes.
What are key practices of proactive contract administration?
Attending meetings, thorough documentation, clear protocols, and maintaining positive team relationships.
Why should architects encourage full CA services in contracts?
To ensure involvement in the project and reduce risk of conflict through better oversight.
How can documentation prevent disputes?
By providing clear records of decisions and communications that clarify project expectations.
Why must architects be impartial in conflict resolution?
Because they serve as an agent of the owner but must remain fair to all parties to maintain trust.
What happens if IDM refuses to decide a claim?
The claim moves to mediation and possibly arbitration or litigation.
Why is mediator impartiality important?
It ensures fair negotiation and fosters trust between parties.