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Construction Dispute Resolution

Mediation Conciliation

1. The entire dispute resolution process is led by 1. do not need 3rd party to be as an intermidator. May
mediator. involve 3rd party but the degree of involvement is very
minimal.
2. To enter the mediation, both parties must volunteer
to enter to it. 2. Can engage for conciliation as part of their effort to
solve the problem.
3. Mediator will not make decision and only help facilitate Negotiation
because they have to follow Mediation Act 2012 (MA).
1. Informal and involves a series of offers and
Benefits: a) cheaper than litigation and other methods. counteroffer between parties until they reacted to
b) Parties make own decission. agreeement to resolve dispute.
c) It is voluntary
Adjudication 2. The parties have the power to settle.
Expert Determination
1. A process for the construction disputes resoultion
introduced by the (Construction Industry Payment and 1. It is the alternative dispute resolution
Adjudication Act 2012 (CIPAA))
2. Require an expert to decide the case.
2. Speedy dispute resoultion through adjudication to
ensure payments prompty made. 3. it is a process in which we will submit the case to the
expert third party.
Benefits: a) Adjudicator is completely independent to
both parties. Benefits: a) The decision is impossible to be appealed
b) Acts as "pay now, argue later" mechanism. once the decision of an expert will be final.
b) Cheaper, faster process compared as arbitration.

Arbitration Litigation

1) Method of Alternative Dispute Resolution (ADR) 1. It is the main dispute resolution

2. Binding on the parties 2. It has widest jurisdiction and in addition to


determining disputes and declarations.
3. Less formal than litigation
3. Nobody by default can stop the parties from going to
4. Decision is like judge, faster, cheaper, does not need to go to the court to sue although the clause in that contract
court might written cannot go to sue.

Benefits: a) Arbitrators hold stronger power than Benefits: a) judge will manage proceedings
adjudicators. throughtout the process.
b) more flexibility to court proceedings.
b) The decision made is binding.
Difference between express term and implied term (lecture 4)
Tendering (lecture 2)

Types of Tendering for Contractors' Services Express term


(Lecture 2)
1. Specifically stipulated in a contract
1. Open Tendering
: Inviting offers from registered contractors through 2. Usually the contract is pretty much clear when it comes
advertisement normally in general press. Exp: The Star to information.

2. Selective Tendering 3. Clarity of contract is rendered as unambiguous.


: Inviting offers from a limited number of registered
contracting firms 4. Terms are agreed by both parties (Orally, written)

3. Negotiated Tendering
: Clients do a direct negotiation (tender price) with the
contractor who meetthe requirements.

Types of Tendering for Consultants' Services Tendering


(Lecture 2)
A process where contractors are invited to submit bids to
1. Quotation carry out construction work.

2. Interview

3. Negotiation

Implied term Contentd included in a tender document

1. Not written in contract but still need to be carried out. 1. Instruction to Tenderer
2. Form of Tender
2. Must fit for it's intended purpose. 3. Form of Contract
4. Letter of Acceptance
3. By custom fact or law. 5. Preambles
6. Specification
4. Carry the same weight as express term ( 一样重要) 7. Bill of Quantities
8. Schedule of Rates
5. Must not be in conflict with express term. 9. Drawings
10. Appendix
Dual Liability (Lecture 5)

1. Definition

Two parties who are contracting with each other, they are
liable (要负责任) for the breach of contract. Beyond that,
the parties to the contract can sue each other based on tort
as well, mainly due to the negligance because the other
party has breach the duty

Tort: breach of a legal duty owed to person generally.

Contract: An agreement enforceable by law under Contract Act


1950- Section 2(h).

Requirements to form a valid contract

1. Offer and acceptance

2. Mutual assent

3. Consideration

4. Legal Purpose

5. Capable Parties

Difference between contract and tort

1. In area of liability

Contract: Based on the consent of the parties (agreement).


Privity of Contract.

Tort: Imposed by law. Duty is owed towards persons


generally.

2. In area of Measure of damages

Contract: The amount awarded t put the plaintiff in the position


if the contract had been performed

tort: The amount awarded as far as possible, restore him to


his original position as if tort never occurred.

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