ABSTRACT
The likelihood of disputes developing on most construction projects today is great, if for no other reason but because the language of the usual construction contracts is seldom so clear as not to leave room for disagreement. This chapter provides the frequently re-occurring reasons for claims and investigates ways how those claims can be avoided and with what financial consequences. The average cost of an extended duration sustained by the sample projects represented 8.9 percent of their original contract price. What the owners must realize is that disputes, in the final analysis, are always about unanticipated extra costs. The essence of a construction dispute is always the responsibility for the potential cost overruns. Therefore, the only way to avoid disputes and/or claims is either to eliminate or at least to reduce significantly the opportunities for cost overruns, such can be achieved only with better prepared or more comprehensive bid documents.
