Introduction to Construction Dispute Resolution Case Study Tren

  • Slides: 48
Download presentation
Introduction to Construction Dispute Resolution Case Study: Tren Urbano Project Feniosky Peña-Mora Gilbert W.

Introduction to Construction Dispute Resolution Case Study: Tren Urbano Project Feniosky Peña-Mora Gilbert W. Winslow Career Development Associate Professor of Information Technology and Project Management MIT Room 1 -253, Phone (617)253 -7142, Fax (617)253 -6324 Email: feniosky@mit. edu Intelligent Engineering Systems Laboratory Center for Construction and Research Education Department of Civil and Environmental Engineering Massachusetts Institute of Technology

Definitions n n n WHAT • Light Rail Transit Line in San Juan, Puerto

Definitions n n n WHAT • Light Rail Transit Line in San Juan, Puerto Rico • Completion of the First Phase by November 2001 at a Cost of $1. 5 Billion WHO • Puerto Rico’s Department of Transportation and Public Works (DTPW) • Parsons De. Leuw, Inc • Federal Transit Administration (FTA) • Siemens Transit Team • US Partners : Daniel, Mann, Johnson and Mendenhall (DMJM) and Frederic R. Harris, Inc • Local Partners: Eduardo Molinary and Associates (Architects), Barret and Hale and Associates (Consulting Engineers) WHY • n 2 Real-Life Application of DART HOW • Understand Project Circumstances • Identify and Analyze Potential Conflicts • Design Conflict Management Plan • Review and Revise the Plan Based on Project Data Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story n Project Description n Procurement Strategy n Conflict Management

Outline Tren Urbano Project Story n Project Description n Procurement Strategy n Conflict Management in Tren Urbano Ø • Partnering • Change Order Process • Dispute Resolution Contract Language Analysis of Tren Urbano Components n Partnering Analysis in Tren Urbano n • • 3 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Tren Urbano Project Story n 1989: Conceptual Design of Tren Urbano January 1993: Review

Tren Urbano Project Story n 1989: Conceptual Design of Tren Urbano January 1993: Review of Developed Concept by a New Executive Team n February 1993: Tren Urbano Designated as One of the Four Turnkey Demonstration Projects in the Nation n January 1994: Submittal of Successful Bid for Federal Assistance to the US Congress n April 1994: $42 -Million Contract for GMAEC Services Between DTPW and Joint Venture 4 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Tren Urbano Project Story 5 n Tren Urbano Office (TUO): Planning and Environmental Permitting

Tren Urbano Project Story 5 n Tren Urbano Office (TUO): Planning and Environmental Permitting Process, Partial Plans and Systems Specifications, Structuring Procurement Process n November 1995: Approval on Publication of Final Environmental Impact Statement (FEIS) n February 1996: FTA’s Approval on FEIS and Record of Decision n March 1996: $307. 5 million Full Funding Grant Agreement Between DTPW/HTA and FTA n August 2, 1996: Groundbreaking for Phase I Alignment Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story Ø Project Description n Procurement Strategy n Conflict Management

Outline Tren Urbano Project Story Ø Project Description n Procurement Strategy n Conflict Management in Tren Urbano ü • Partnering • Change Order Process • Dispute Resolution Contract Language Analysis of Tren Urbano Components n Partnering Analysis in Tren Urbano n • • 6 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Project Description 7 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano

Project Description 7 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Phase I Alignment 8 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren

Phase I Alignment 8 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description Ø Procurement Strategy n Conflict Management

Outline Tren Urbano Project Story ü Project Description Ø Procurement Strategy n Conflict Management in Tren Urbano ü • Partnering • Change Order Process • Dispute Resolution Contract Language Analysis of Tren Urbano Components n Partnering Analysis in Tren Urbano n • • 9 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Procurement Strategy n Phase I Project Divided into Six Design/Build Contracts for Civil Structures

Procurement Strategy n Phase I Project Divided into Six Design/Build Contracts for Civil Structures and One System and Test Track Turnkey (STTT) Contract n STTT Contract • Construction of Two Stations and 2. 6 Km of Test Track, Maintenance and Storage Facility, Operations and Control Center • Delivery of train Vehicles and Systems • Systems Integration • System Operations and Maintenance for a Minimum of Five Years 10 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Tren Urbano Hybrid Approach Types of Procurement 1 2 Party Also referred to as

Tren Urbano Hybrid Approach Types of Procurement 1 2 Party Also referred to as Turnkey DBOT Siemens Transit Team (STT) Turnkey Contractor Construction Management (at no risk) GMAEC Owner’s Consultants Multiple Primes Design-Build Alignment Section Contractors (ASC) Civil Contractors 3 4 5 11 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Organizational Chart 12 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano

Organizational Chart 12 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü Ø Partnering • Change Order Process • Dispute Resolution Contract Language Analysis of Tren Urbano Components n Partnering Analysis in Tren Urbano n • • 13 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Partnering n Objectives • Promotion of Working Relationships Among Participants • Promotion of Cooperation

Partnering n Objectives • Promotion of Working Relationships Among Participants • Promotion of Cooperation and Trust • Achievement of Common and Individual Objectives on a Non-confrontational Basis n Initial and Periodical Follow-up Workshops • Facilitators Retained Though the Partnering Program of the American Arbitration Association 14 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering Ø Change Order Process • Dispute Resolution Contract Language Analysis of Tren Urbano Components n Partnering Analysis in Tren Urbano n • • 15 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Change Order Process 16 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren

Change Order Process 16 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process Ø Dispute Resolution Contract Language Analysis of Tren Urbano Components n Partnering Analysis in Tren Urbano n • • 17 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Negotiation Steps n The Contractor Asserting a Claim if not Satisfied with the Outcome

Negotiation Steps n The Contractor Asserting a Claim if not Satisfied with the Outcome of the Change Order n Five Negotiation Steps Before a Claim Becomes a Dispute • Technical Personnel of the Parties Attempting to Resolve Claims in the Partnering Sessions With Impartiality (At Most 60 Days) • Claim Submitted to Contractor’s Project Manager and Contracting Officer (At Most 10 Days) • Claim Referred to Contractor’s Project Executive and Executive Director (At Most 10 Days) • Claim Determination Submitted within 10 Days by the Contracting Officer to Contractor 18 • Notice of Disagreement Submitted Within 10 Days by the Contractor to the Contracting Office Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Dispute Review Board n DRB Consisting of Three Members • Each of the Authority

Dispute Review Board n DRB Consisting of Three Members • Each of the Authority and the Contractor Selecting Three Nominees • Each of the Parties Selecting One Individual From the Other’s List of Nominees • Third Member: Qualified and Impartial Chairperson selected by Mutual Agreement Within 21 Days n Foundation of The DRB May Take More Than Two Months 19 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Processing Disputes 20 n Step 1 : Contractor’s Request for Meeting and Supporting Statement

Processing Disputes 20 n Step 1 : Contractor’s Request for Meeting and Supporting Statement n Step 2: Authority Submitting to the DBR and Contractor, Response to Dispute and Counterclaims n Step 3: Contractor’s Statement Setting Factual and Legal Defense to the Counterclaim n Step 4: DRB Setting Date of Initial Meeting on Dispute n Step 5: DRB Issuing Draft Findings and Recommendations to Both Parties n Step 6: Notification of Miscalculation or Error in the Draft n Step 7 : Final Findings and Recommendations Submitted to Executive Director and Contractor n Step 8 : Executive Director Issuing A Written Decision to Accept or Reject Recommendations Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Legal Action n Court Action Filed By Contractor Within 90 Days After Receipt of

Legal Action n Court Action Filed By Contractor Within 90 Days After Receipt of the Executive Director’s Decision n Negotiation Time Frame • 20 Weeks For Claim Resolution Process • 6 Months for Dispute Resolution Process 21 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü Ø • • 22 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Enhance the Pros of Duplication 23 Introduction to Construction Dispute Resolution Chapter 11: Case

Enhance the Pros of Duplication 23 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Example of Duplication n Parsons Brickerhoff (in Siemens Group), Responsible of the Management Functions

Example of Duplication n Parsons Brickerhoff (in Siemens Group), Responsible of the Management Functions in Terms of Interface Between Systems to Fixed Facilities and Interface Between Fixed Facilities n GMAEC, Owner’s Consultants, Responsible of Schedule and Design Reviews of the ASC’s Work n Result: More Complete Review and a Superior Project 24 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü Ø • • • 25 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Form a Unified Management Team 26 Introduction to Construction Dispute Resolution Chapter 11: Case

Form a Unified Management Team 26 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü Ø • • • 27 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

STTT Contractor’s Fiduciary Relationship With Owner n Two Contrasting Perceptions of STTT: Owner Representative

STTT Contractor’s Fiduciary Relationship With Owner n Two Contrasting Perceptions of STTT: Owner Representative and Contractor n As Owner Representative • Operations and Maintenance for 5 -10 Years Reduced Lifecycle Costs. • Overseeing the ASC’ s Interface With Each Other & Interface With Systems • Reviewing ASC ’s Design & Schedule • Partnering With PRHTA/GMAEC n As Contractor • Design and Construction of Systems and Vehicles (Major Cost Component of STTT Contract) 28 • Design and Construction of One Fixed Alignment Section Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü Ø • • 29 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Aid Non-Contractual Relationships n ASC ’s Partnering With Owner Improving Costs and Schedule n

Aid Non-Contractual Relationships n ASC ’s Partnering With Owner Improving Costs and Schedule n ASC ’ s Partnering with STTT Without Contractual Commitment 30 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü Ø • • • 31 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Improve Communication and Understanding Between the Multi -Cultures n Multi-Cultural Environment : Puerto Rican

Improve Communication and Understanding Between the Multi -Cultures n Multi-Cultural Environment : Puerto Rican Contract Managers and North American Design Managers (Different Contract Languages, Priorities in Objectives) n Multi-Phase Environment: Planning of Next Phases, Design and Construction of Phase I, Preparation for Operation and Maintenance of Phase I n Initial Partnering Meetings and Follow-up Meetings 32 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü Ø • • 33 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Initial Meetings n Held Between Owner and Each Party With Whom the Owner Has

Initial Meetings n Held Between Owner and Each Party With Whom the Owner Has Signed a Contract n 2 -3 Day-Meetings in a Neutral Location, Facilitated by a Member of the AAA n Objectives • Discussions of Risks, Concerns, Goals • Development of Trusting Relationships 34 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Quality Summit n Meeting Between All the Parties, Ran By the Tren Urbano Office

Quality Summit n Meeting Between All the Parties, Ran By the Tren Urbano Office n Results of Observations From Quality Summit • Improve Cross-cultural and Communicational Relationships • Improve in Drive and Belief in Partnering by Some of the Contractors • Need Some Human Infrastructure in a very Compressed Time n Lessons Learned from Quality Summit • Need for a Third Party Facilitator • Focus on Working Together in Small Groups Instead of Numerous Presentations • More Interactions Between Parties 35 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü ü Ø • 36 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Follow-up Meetings n Monthly Partnering Meetings Between Project Principals Parties Presenting Status Reports and

Follow-up Meetings n Monthly Partnering Meetings Between Project Principals Parties Presenting Status Reports and Meetings Run by Owner’s Top Management n Issues Resolution at a Micro-Management Level n Reduced Now to Quarterly Meetings Preventing Shortcutting the Regular Resolution Process and Focusing on Partnering Relationship Issues 37 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Evaluation of Partnering n A Clear Champion For Partnering Was not Clearly Identified in

Evaluation of Partnering n A Clear Champion For Partnering Was not Clearly Identified in the Pre-Planning Stage n More Faith and Genuine Commitment Need to Be Elicited in the Partnering Process n Follow-up Meetings Could Be Improved if Run by a Third Party n More Emphasis Should Be Done on the Need and Value of Partnering n Need For More Meetings in an Informal Setting n All Management Parties Should Form One United Management Team n Partnering At All Levels (Example, in Field Inspection) 38 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü ü Ø 39 n Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

General Analysis of Partnering Components n Lessons Learned Divided into Three Categories • Initial

General Analysis of Partnering Components n Lessons Learned Divided into Three Categories • Initial Factors : Set at the Beginning of the Project, Impact Seen at the End of the Project • Operational Factors: Occurring Throughout the Project, Affected by Initial Factors • Resulting Factors : Product of Other Factors 40 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Initial Factors n Initial Meetings • Start Early With a Full Partnering Initialization •

Initial Factors n Initial Meetings • Start Early With a Full Partnering Initialization • Don’t Cut on Time and Cost at this Stage • Develop Trust n Education • Use Experienced Employees • Educate and Train People n Numerous Cultures • Recognize Cultural Differences n Delivery Method • High Commitment to partnering in the Presence of Different Non-contractual Relationships 41 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Operational Factors n n n n Follow-up Partnering Meetings : Maintaining the Initial Trusting

Operational Factors n n n n Follow-up Partnering Meetings : Maintaining the Initial Trusting Partnering Relationship Knowledge Transfer: Open Communication for Knowledge Transfer Between Various Cultures Evaluations: Soft Measures Such as Problem Solving Methods and Hard Measures Such as Number of Claims Champions for Objectives: Champions for Quality, Cost, schedule and Partnering Benefits of Duplication: Extra Cost Versus Greater Quality-Preventing Adversarial Positions and “All is Responsible, Nobody is” Syndrome Unified Management Team Turnkey Contractor Acting as Part Owner 42 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Resulting Factors n Site Transfer Conflicts: Monitoring Hand-Over Between Contractors in the Absence of

Resulting Factors n Site Transfer Conflicts: Monitoring Hand-Over Between Contractors in the Absence of Direct Contractual Links n Micro-Management: Effective Partnering Saving on the Resources Needed for Micro-Management n Claim Management 43 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü ü ü 44 Ø Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

General Analysis of Conflict Resolution n Insights From Interviews Regarding Conflicts in the Rio

General Analysis of Conflict Resolution n Insights From Interviews Regarding Conflicts in the Rio Piedras Section • Conflicts and Disputes Are Inherent to the Construction Industry • Owner and Contractor Are Disagreeing Concerning How the Project Is Running • Mitigation Actions Are Most Effective if Taken early • Managers Have A Lot of Experience Regarding Conflict Management and They Feel Pretty Confident About Their Negotiation Skills • Decision-makers Are Not Aware of the Long Term Effects of Their Actions 45 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management

Outline Tren Urbano Project Story ü Project Description ü Procurement Strategy ü Conflict Management in Tren Urbano ü ü Partnering ü Change Order Process ü Dispute Resolution Contract Language Analysis of Tren Urbano Components ü Partnering Analysis in Tren Urbano ü ü ü ü ü 46 ü Enhance the Pros of Duplication Form a Unified Management Team STTT Contractor’s Fiduciary Relationship With Owner Aid Non-Contractual Relationships Improve Communication and Understanding Between the Multi-Cultures Initial Meetings Follow-up Meetings General Analysis of Partnering Components General Analysis of Conflict Resolution Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

Summary n Partnering and the Success of Innovative Delivery Methods in a Global Market

Summary n Partnering and the Success of Innovative Delivery Methods in a Global Market n Importance of Partnering in Multi-Cultural, Multi. Phase Projects n Partnering Embodied in Initial Meetings, Quality Summit, Follow-Up Meetings n Conclusions and Recommendations • Contract Language Regarding Conflict Resolution Is Not the Source of Problems • Inter-phase Conflicts Require Additional efforts 47 Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002

References 48 n [DTOP, 2000] : Puerto Rico’s Department of Transportation and Public Works

References 48 n [DTOP, 2000] : Puerto Rico’s Department of Transportation and Public Works home page (http: //www. dtop. gov. pr/english/tu/history. htm) (2000). n [Harpoth, 1999] : Harpoth, Nina. Effective Partnering in an Innovative Procured, Multi-Cultural Project, MS Thesis. MIT Deaprtment of Civil and Environmental Engineering. 1999. n [Peña-Mora et al, 2002] : Peña-Mora, F. , Sosa, C. , and Mc. Cone, S. Introduction to Construction Dispute Resolution. Prentice Hall, New Jersey, 2002 n [Rio Piedras Contract, 1997] : Rio Piedras Design-Build Agreement, Phase I of Tren Urbano, Contract No. AC-500083, Rio Piedras Contract: Alignment Section 7, Puerto Rico Highways and Transportation Authority. n [TUI, 1997 -8] : Tren Urbano Interviews with Project Participants, (1997 -8). Tren Urbano Office and Siemens Transit Team Office, San Juan, Puerto Rico. n [TUQS, 1997] : Tren Urbano Quality Summit, 10/6/97 & 10/7/97, San Juan, Puerto Rico (1997). Introduction to Construction Dispute Resolution Chapter 11: Case Study: Tren Urbano Project © Peña-Mora, et. al. 2002