ch3-161

• Dispute


  A disagreement, argument, or controversy—often one that gives rise to a legal proceeding (such as arbitration, mediation, or a lawsuit)
• Adverse party


  The opposing parties in a dispute
• The conditions of a contract must be fulfilled, in our construction case- the stipulations on the Contract Documents- the Service Agreement, the Terms of References, and the General Conditions (CIAP Doc 101/102), must be fulfilled
• Main sources of dispute in construction

  • Variations without written agreement or consent of both or concerned parties
  • Delays (whether excusable or not excusable)
• Types of variations without written agreement or consent

  • Alterations to the design (plan)
  • Alterations to the Quantities
  • Alterations to the Quality of material
  • Alterations in Working Conditions
  • Alterations to the Sequence of Work
• Liabilities in the context of disputes and arbitrations

  • Fraud (dolo)
  • Negligence (culpa)
  • Delay (mora)
• Actual damages


  For actual losses or unrealized profit
• Moral damages


  For mental and physical anguish (reputation & sleepless nights, stress, anxiety, etc.)
• Methods for settling construction conflicts

  • Exemplary- corrective
  • Nominal- can be assessed
  • Temperate
  • Liquidated- by agreement of both parties as predetermined by the contract/service agreement stipulations
• EO 1008 resulted in the creation of PD 1746 which created the CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILS. (CIAP)
• RA 4566 resulted in the creation of the PHILIPPINE LICENSING BOARD FOR CONTRACTORS (PCAB)
• RA 9285 or the Alternative Dispute Resolutions Act of 2004 created a special court for special small claims and for the construction issues, the Construction Industry Arbitration Commission / Court (CIAC)
• Disputes and Arbitrations: 'All questions in dispute under this Agreement shall be submitted in accordance with the provisions of R.A. No. 9285,otherwise known as the Alternative Dispute Resolution (ADR) Act of 2004 and as provided for under E.O. No.1000, governing Construction (and Consulting) Industry Arbitration, as well as Art. 2042 of the New Civil Code.'