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Practical Tips On
Construction Disputes
HASIT B. SETH
Dispute Avoidance & Claims Management Course
Manipal Law School
14 October 2023
(c) Hasit Seth, 2021
Introduction
Name: HASIT B. SETH
I am a disputes lawyer in India. My practice focuses on
commercial dispute resolution covering IP, construction,
contracts in litigation and arbitrations
I am licensed to practice law in New York and India
(c) Hasit Seth, 2021
Outline of Tips
 Dispute Avoidance
 Dispute Management
 Dispute Resolutions
(c) Hasit Seth, 2021
Dispute Avoidance
(c) Hasit Seth, 2021
Start with Contracts
 Unusual contract terms
 Irrational milestones
 Non-recognition of realities, e.g., site condition
 Imaginary ideal conditions
 Inflexibility in terms
 Approval mechanisms
 Active contract management
(c) 2021, Hasit Seth
Hedge Risks
 Pricing risks can be hedged
 Sub-contractor monitoring and control
 Plan for other risks in contracts
 Political risks
 Social environment
 Litigation risks
 Methods:
 Resource allocation
 Cash management
 Meet obligations
(c) 2021, Hasit Seth
Dispute Management
(c) Hasit Seth, 2021
Dispute Mechanisms
 First steps: DAB, DAABs, Independent Engineers, PMCs
 Good documentation
 Correspondence index
 Communication
 Not communicating is not an option!
 Find good advisors early on
 Deep study of contract terms
(c) 2021, Hasit Seth
Engineering Approach To Contracts
 Contract is a system with many moving parts.
 If there are contract design flaws, correct them early on.
 Monitoring variance from contract terms and actual performance is a
key.
 Active risk assessment at each contract milestone is a must.
 Prepare periodic contract risk assessment reports just like its done
for the project.
 Forecast problems using scenarios.
(c) 2021, Hasit Seth
Create Documentation Trail
 Obsessively document facts in contract process.
 Contemporaneous records are the best evidence.
 Dont hesitate to place blame where it lies.
 Claims need basis in correspondence and reports.
 Prepare test reports very regularly and at least as many as required
by the contract terms.
(c) 2021, Hasit Seth
Dispute Resolution
(c) Hasit Seth, 2021
Choosing the Right Mechanism
 DAB, DAABs can be very effective.
 Employers must respect IE / PMC recommendations.
 Arbitration can be quite expensive.
 Court or arbitration must be a final alternative.
 India does not have statutory adjudication, which is effective in many
jurisdictions.
 Expert determination could be used, but is not preferred.
 Use mediation seriously. There is a law now for it.
(c) 2021, Hasit Seth
Arbitration  Governing & Seat Law
 For international contracts, this is a key issue.
 Civil law countries and common law countries have quite different
principles.
 Choose it carefully.
 Law of the Seat can affect the progress of arbitration.
(c) 2021, Hasit Seth
Arbitrators
 Dont prefer three arbitrators only for sake of neutrality.
 Nominated arbitrator is NOT your advocate / representative on the
panel.
 Sole arbitrator
 logistics are easy.
 Costs are cheaper
 For larger disputes, choose an experienced arbitrator  technical or
judicial background is not the sole criteria.
(c) 2021, Hasit Seth
Inputs In Arbitration
 Give good summaries of various analysis.
 Dont dump correspondence on the arbitrator. Provide analysis along
with raw data.
 Submit Statement of Claim early if you are a claimant.
 Have good and relevant witnesses.
(c) 2021, Hasit Seth

More Related Content

2023-10-14 - Manipal Law School Construction Claims.pptx

  • 1. Practical Tips On Construction Disputes HASIT B. SETH Dispute Avoidance & Claims Management Course Manipal Law School 14 October 2023 (c) Hasit Seth, 2021
  • 2. Introduction Name: HASIT B. SETH I am a disputes lawyer in India. My practice focuses on commercial dispute resolution covering IP, construction, contracts in litigation and arbitrations I am licensed to practice law in New York and India (c) Hasit Seth, 2021
  • 3. Outline of Tips Dispute Avoidance Dispute Management Dispute Resolutions (c) Hasit Seth, 2021
  • 5. Start with Contracts Unusual contract terms Irrational milestones Non-recognition of realities, e.g., site condition Imaginary ideal conditions Inflexibility in terms Approval mechanisms Active contract management (c) 2021, Hasit Seth
  • 6. Hedge Risks Pricing risks can be hedged Sub-contractor monitoring and control Plan for other risks in contracts Political risks Social environment Litigation risks Methods: Resource allocation Cash management Meet obligations (c) 2021, Hasit Seth
  • 8. Dispute Mechanisms First steps: DAB, DAABs, Independent Engineers, PMCs Good documentation Correspondence index Communication Not communicating is not an option! Find good advisors early on Deep study of contract terms (c) 2021, Hasit Seth
  • 9. Engineering Approach To Contracts Contract is a system with many moving parts. If there are contract design flaws, correct them early on. Monitoring variance from contract terms and actual performance is a key. Active risk assessment at each contract milestone is a must. Prepare periodic contract risk assessment reports just like its done for the project. Forecast problems using scenarios. (c) 2021, Hasit Seth
  • 10. Create Documentation Trail Obsessively document facts in contract process. Contemporaneous records are the best evidence. Dont hesitate to place blame where it lies. Claims need basis in correspondence and reports. Prepare test reports very regularly and at least as many as required by the contract terms. (c) 2021, Hasit Seth
  • 12. Choosing the Right Mechanism DAB, DAABs can be very effective. Employers must respect IE / PMC recommendations. Arbitration can be quite expensive. Court or arbitration must be a final alternative. India does not have statutory adjudication, which is effective in many jurisdictions. Expert determination could be used, but is not preferred. Use mediation seriously. There is a law now for it. (c) 2021, Hasit Seth
  • 13. Arbitration Governing & Seat Law For international contracts, this is a key issue. Civil law countries and common law countries have quite different principles. Choose it carefully. Law of the Seat can affect the progress of arbitration. (c) 2021, Hasit Seth
  • 14. Arbitrators Dont prefer three arbitrators only for sake of neutrality. Nominated arbitrator is NOT your advocate / representative on the panel. Sole arbitrator logistics are easy. Costs are cheaper For larger disputes, choose an experienced arbitrator technical or judicial background is not the sole criteria. (c) 2021, Hasit Seth
  • 15. Inputs In Arbitration Give good summaries of various analysis. Dont dump correspondence on the arbitrator. Provide analysis along with raw data. Submit Statement of Claim early if you are a claimant. Have good and relevant witnesses. (c) 2021, Hasit Seth