This audio is automatically generated. Please let us know if you have any comments.
talk soon Talk often. Speak honestly.
That was the key takeaway from expert panelists who discussed how to minimize disputes over large public construction projects during Wednesday’s Construction Dive event,”Threat Assessment: Minimize conflicts in public procurement.”
The panelists said that the biggest added value of these projects is to use a progressive delivery method of design and construction, which is based, in particular, on open communication through all stages of the process between the interested parties.
“I think the most important thing in all construction projects is to really have open and collaborative communication,” said Lisa Love, a mediator and arbitrator at alternative dispute resolution provider JAMS. “I think the breakdown in communication can really have a snowball effect. And I think open communication and other things you can put in place will help make the project easier.”
Estimates put about $500 billion in the pipeline for U.S. megaprojects, Love said.
Top civilian jobs remain a hot market. Even with economic headwinds at the federal level, demand remains high in states and cities, said Mary Scott Nabers, president and CEO of research strategy firm Strategic Partnerships.
“A lot of DOTs right now are in total limbo because of supply chain, inflation and tariffs,” Nabers said. “But the surprising thing is that the jurisdictions of state and local governments have not slowed construction projects at all.”
Delivery methodology
With progressive design-build, “you can design and phase the project so that you start construction on the project much earlier,” said Chris Burke, vice president and regional manager of Granite Construction.
Meanwhile, other delivery methods often de-emphasize communication, Burke said.
“If we start from day one after the price submission, you could see there are no conversations about how we’re going to build this project. And then it’s inherently more difficult,” he said.
Nabers said he encourages clients to look for new ideas that help foster collaboration, deliver projects faster and share risk.
Steve Rule, vice president of Turner Construction, described progress in delivery methods since he began his 40-year career as “light years” ahead. With advances in design and progressive construction “every step of the way increases that collaboration,” Rule said, “And I think it delivers a better product. And anecdotally, as far as I’m concerned, with a lot less contention.”
Direct talk
On massive projects, the most common disputes that lead to delays involve design issues, changes in the scope of work and late information sharing, according to Love. On average, he said, that can stretch a major project by 16 months.
Clayton Gilliland, president of Oakland, Calif.-based contractor Stacy Witbeck, emphasized what many already know: time is money.
“When an issue is related to time, that’s when the costs become staggering,” he said. “And whatever we can do to solve those problems and keep the project going, that’s what we’re all about.”
And no matter how hard stakeholders try, “you can’t contract your way out of resolving disputes,” Love said. “Disputes are inevitable.”
About building new ones San Diego International Airport Terminal 1Rule, the project manager, said the construction team encountered challenges. When the designs indicated a higher cost than originally budgeted, in part due to the onset of the COVID-19 pandemic, Turner and JV partner FlatironDragados had to work with the airport to figure out how to proceed.
“We were able to continue the project under some pretty difficult circumstances,” Rule said. “And it’s all because of that early involvement of the contractor and the design team.”
In the absence of an impossibly perfect contract with all the dispute resolution, clear and honest communication, with everyone on the same page, is key, Gilliland said. That honesty can be difficult at times, but it’s vital to success, he added.
“I think as a culture, maybe we’re a little passive aggressive,” Gilliland said. “Maybe we sugarcoat things a little too much. If only we could be more efficient. Call it what it is.”
