Disputes over construction jobs unlikely to increase
increase in Bermuda, according to Construction Association of Bermuda (CAOB) officials.
Mr. Larry Davis and Mr. David Exell, president and past president of CAOB, told a conference yesterday that Bermuda's size and population helped keep the construction process amicable.
"I would not say it is not increasing in Bermuda, I think the relationship between owners and CAOB members is very good -- confidence and trust is in place prior to the signing of contracts. There have been claims on warranties but they are usually worked out between the general contractors and suppliers,'' Mr. Davis said at a CAOB-sponsored seminar on construction claims at the Hamilton Princess.
"I am not aware of any claims going on at this time,'' added Mr. Exell.
Internationally, claims are on the increase, according to Mr. Martyn Bould, a guest speaker at the seminar.
Whether is a result of the recession spawning tighter margins or whether its part of a larger trend toward more litigation or a combination of both is arguable, said Mr. Bould, a partner in Grand Cayman-based BCQS Chartered Quantity Surveyors and one of three guest speakers at the seminar entitled; "Construction Claims -- how to avoid them, defend them and pursue them.'' About 60 Contractors, subcontractors, architects and lawyers attended the full-day seminar at the Hamilton Princess.
Meanwhile, the best way to handle a construction claim is to make sure it never gets that far, Mr. Bould added.
"The idea of this seminar is to get people to avoid construction claims by getting people to avoid them in the first place, '' he commented.
"Once there is a claim someone will suffer a loss -- either the owner or the builder...from a claim you've built nothing,'' he added.
"I am involved in some disputes that are in the tens of millions of dollars,'' he commented.
Mr. Bould said he, and other speakers -- Mr. Charles Leonard and Mr. Gerald Katz -- can consult on potential construction disputes before a claim or on claims after they occur.
"Each of us can consult on the contract before the event...by far the more enjoyable and productive work is from proactive rather than reactive work,'' he added. His experience is split about 50-50, he estimated.
Mr. Leonard's skills are in construction project scheduling while Mr. Katz is a lawyer specialising in construction disputes. Mr. Leonard is a senior consultant with Revay and Associates Ltd. with offices in the US and Canada while Mr. Katz is a partner at Katz and Stone with offices in the eastern US.
A similar seminar was held in Grand Cayman last year.
