Table of Contents

1 UNDERSTANDING THE WORK ......................................................................................................... 1

1.1 What........................................................................................................................................ 1
1.2 Why? ....................................................................................................................................... 1
1.3 Advantages.............................................................................................................................. 2
2 PREFERENCES .................................................................................................................................. 2
3 Classification of claims .................................................................................................................... 2
3.1 Claims Within the Provisions of the Contract ......................................................................... 2
3.2 Claims Outside the Provisions of the Contract ....................................................................... 2
3.3 Claims in Tort .......................................................................................................................... 3
3.4 Quantum Meruit: (“as much as it is worth”) claims ............................................................... 3
3.5 Ex-gratia claims ....................................................................................................................... 3
3.6 Claims Concerning Disruption and Delay (Designs) ................................................................ 4
3.7 Claims Concerning Delay on Site Handover/Rights of Way .................................................... 4
3.8 Claims Concerning the Execution of Works, Constructive Changes ....................................... 4

1 UNDERSTANDING THE WORK

1.1 What
Practical literatures based on the existing world of industry define it as that, Dispute
resolution is a term that refers to a number of processes that can be used to resolve a
conflict, dispute or claim. Dispute resolution may also be referred to as alternative
dispute resolution, appropriate dispute resolution, or ADR for short.

1.2 Why?
Dispute resolution processes are alternatives to having a court (state or federal judge
or jury) decide the dispute in a trial or other institution decide the resolution of the case
or contract. Dispute resolution processes can be used to resolve any type of dispute
including family, neighborhood, employment, business, housing, personal injury,
consumer, and environmental disputes.
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1.3 Advantages
Dispute resolution processes have several advantages. For instance, many dispute
resolution processes are cheaper and faster than the traditional legal process. Certain
processes can provide the parties involved with greater participation in reaching a
solution, as well as more control over the outcome of the dispute. In addition, dispute
resolution processes are less formal and have more flexible rules than the trial court.

2 PREFERENCES

Conflicts and disputes seem to be a never-ending story within the construction

industry. It will continue to consume time, cost and erodes valuable human
relationship.

The DR services shall give due attention to early warning monitoring works and
informally awareing works, methods and materials that could lead in later times to
dispute both the Client, Contractor and the Engineer.

Now days contract dispute avoidance is equally given attention and the road projects
too shall continue to practice in a manner that does not violate the neutrality of the
service as required by the Stakeholders.

3 CLASSIFICATION OF CLAIMS

3.1 Claims Within the Provisions of the Contract

Claims made under the expressed provisions of a contract fall under this category.
They arise and are dealt with under the provisions of the contract. Such types of claims
form the largest part of claims and the terms of the contract define the situations in
which they may be made and how they may be handled.

3.2 Claims Outside the Provisions of the Contract

These claims are those which are either not made under the conditions of contract or
are those allegedly made under them but considered legally unenforceable by the
employer on the basis that they do not fall within their provisions.

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3.3 Claims in Tort

The law of tort is concerned with civil duties and relationships. Tort is a legal term used
to describe the various wrongs, which may give rise to civil proceedings, mainly in the
form of action for damages. Although the law of tort regulates a wide variety of unlawful
behavior, those related to construction include nuisance, slander,
libel, trespasses and negligence. For example, excessive dust, noise, vibration, fume
s, seepage, gasses, smoke etc. produced by someone may expose him to liability for
nuisance.

3.4 Quantum Meruit: (“as much as it is worth”) claims

Quantum Merit claims are claims where work has been done but no contract or price
has been agreed. Then it may be claimed that the work should be valued and paid for
what it is worth. A quantum Meruit claim may also arise, for example where work is
done on the basis of a letter of intent and there is no contractual liability.

3.5 Ex-gratia claims

These are claims made with no foundation in the contract or at law but only in a sense
of “fairness” or equity. Such claims depend upon ‘ex-gratia’ or ‘kindness payments ‘
by the employer made in the particular circumstances; sometimes-such payments are
made to avoid or to terminate claims negotiations or a dispute. An ‘Ex-gratia’ claim
might be made to recover cost incurred by the contractor, the expenditure of which
gave benefit to the employer, but for which there are no grounds for recovery under
the contract. The principal bases of claim, which may be submitted, are among others
the following:

a) Costs associated with the encountering of physical obstructions and conditions which would
not have been foreseeable by an experienced Contractor
b) Errors in setting out which are based on incorrect written data Supplied by
the Engineer
c) Loss or damage due to employer's risks.
d) Indemnities that the employer has contractually undertaken to assume.
e) Fossils or discovery of things of geological or archaeological interest.
f) Delays caused by other interfacing contractors.
g) Uncovering work that has already been completed.

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h) Suspension of the work ordered by the Engineer.

i) Late Possession of the site, which is as a result of a failure of the employer to
give the required handover.
j) Remedying defects not the responsibility of the Contractor.
k) Searching for defects which are not the fault of the Contractor.
l) Valuation of variations which may include alternations, additions and/or omissions
m) Provisional sums pending a proper valuation of the variation under Clause 52above
n) Special Risks which very often include war, hostilities, contamination, riots another such risks
o) Fluctuations of labor costs (if provided for) and subsequent legislation that adversely effects
the project

3.6 Claims Concerning Disruption and Delay (Designs)

One of the most common causes of claims in international contracts has been the late
issue of information and drawings, by the consultant to the contractor. Most contracts
are carried out on the principle that the bidding documents include fairly adequate
details of drawings to enable the contractor to carry out the works but that working
drawings necessary for the implementation of the works be prepared on site by the
contractor.

3.7 Claims Concerning Delay on Site Handover/Rights of Way

One of the major causes of claims in the Ethiopian construction industry, particularly
in international projects has been the late handing over, or rights of way related
issues.

In most international projects in Ethiopia this has been the most common type
of claims. It stems partly from a wrong understanding of the provisions of the contract,
and the desire to start the work as soon as possible. Whilst the provisions of the
contract demand that the site behanded over in a reasonable time, most Clients do
not seem to fathom the depth of the problem that a late handover may cause. This
apparent contradiction has been the cause of claims in some projects.

3.8 Claims Concerning the Execution of Works, Constructive Changes

Such changes are changes which arise from acts that are directly attributable to the
owner. Such acts result in more work or more time on the work and for which the owner
may not grant formal variation order.

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