Dispute Resolution Case Study

This case study explores issues leading to a significant dispute between a design-build general contractor and a key subcontractor. Substantial disagreement develops between them over the subcontractor’s entitlement to a change order for an unknown site condition. Site personnel for the general contractor and subcontractor are unable to resolve the dispute themselves due to their lack of objectivity. Subsequent escalation to higher parties is made problematic by the history of acrimony and lack of trust as well as a failure to be informed of the relevant facts and to understand and appreciate their importance. The substantial risk of financial and reputational harm to both the general contractor and subcontractor are explored, and negative impacts to project success are identified. The different approaches to dispute resolution—negotiation,escalation, mediation, and arbitration—are analyzed.

Teaching Notes for the instructor are provided to assist in using the case study. Instructors should send students the downloaded version rather than links to avoid student access to instructor notes.