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What are the Causes of conflict in project environment?

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Question added by Deleted user
Date Posted: 2013/10/29
JAIME ESTRADA
by JAIME ESTRADA , Contracts Engineer (Contracts Management) , SRACO-SATORP

A) Inconsistencies of conditions found in different documents that form part of the Contract. Even though there is usually a Contract clause that stipulates precedence of different documents that rules what document governs over the others, the Contractor's claim relative to that issue remains a subject to debate or dispute especially if the cost involved is a big amount.

 

B) Failure of a Contractor to include a major item involving large cost in his estimate which might have been overlooked by its Estimator or Tendering Head. This said major item which is required in the project contract when demanded by the Owner during project execution starts to create conflict.

 

C) Failure of the Project Owner to clearly specify the specifications of important items that entail big cost.

 

D) Unavailability of specified material or brand in the local market at the time of project execution. With no other recourse, Contractor will then resort to importation of this said item. This will lead to delays of project, hence time schedule is adjusted, and if that happens, all other activities that depend on the delayed work will create "domino" effect that severely affect the progress of works.

 

E) Inefficient Planning and Scheduling

 

F) Corruption

 

G) Inaccuracy in the interpretation of Contract provisions

 

H) Inefficient communications and lack of coordination create  environment of uncertainties leading to occurrences of delays affecting works progress  and often result  to Project Owner and Contractor blaming each other.

 

I) Unforeseen site conditions  during the early stage of work which might entail big cost as the Contractor did not allow cost for this or did not include in his cost estimate. This will lead to delays resorting to claims.

 

J) Unspecified rights of the Contractor  in the contract to claim for other various possible occurrences or eventualities like "Change in Government Regulations" , "Increase in Labor fees and taxes imposed by the host Government", Price Escalation, Inflation, Sudden botcott or union strike staged by workers, work visa problems and many more.

 

K) Failure of the Contractor to include in his bid price or to allow appropriate amount for other contingencies in his cost estimate.

-End of Statements-

 

 

Siby Blesson
by Siby Blesson , Estimation Engineer , Resi air

1. lack of co-ordination

2. fight for silly mistakes what others did other than rectifying it.

3. hiding the mistakes we did and blaiming others mistakes.

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