A practice that uses construction experts to settle disputes about defect claims offers cost and time savings for owners, developers, builders, subcontractors and materials suppliers, Edward Martinet, a claims manager, advises in Construction Executive's "Legally Speaking" column this month.
Claims cases can run as long as three years, Martinet notes.
"As the fight over scarce resources (funding and personnel) continues to intensify, resolution of complex construction defect cases is more difficult to achieve than ever," he says. "Insurance coverage is becoming tougher to secure, litigation costs are soaring, significant self-insured retentions are common and many states have weakened indemnity statutes— creating a difficult environment for any party to settle or win."
One answer he suggests (and that his firm, LiMa Solutions offers) is "value-engineered" alternative dispute resolution (ADR).
"The ADR process views construction litigants and defendants as stakeholders rather than as competitors," Martinet writes. "A conciliatory approach effectively levels the playing field and identifies common ground between the parties".