Technical Dispute & Change Management
Technical and contractual changes are among the most common challenges in engineering projects; modifications that are not managed properly turn into delay, cost overrun and conflict that may later escalate into formal claims or disputes. We help you address technical and contractual issues professionally, protect your rights and reduce the risk of costly disputes.
Overview
Disputes in Projects: A Natural Phenomenon That Can Be Managed
Disputes between stakeholders are natural and to be expected at any project stage. The most common cause is disagreement over decision-making priorities and differing views on how to address an issue; sometimes they arise from personal differences rooted in culture, values and behaviour.
The view of disputes, however, has shifted over the years — from a harmful phenomenon to be prevented, to one that can benefit the project if managed well. Good management requires an integrated mechanism to deal with any disagreement the moment it arises or is anticipated, to stop it escalating into a dispute that is hard to resolve, eroding the relationship between the parties and harming the whole project.
This mechanism rests on documenting every issue that could lead to a dispute through an “Issue of Disagreement” record, in which the concerned party describes the dispute and its causes from their viewpoint. The project manager then reviews it, assesses its severity and likely impact on time, cost, quality and scope, and assigns the most capable team member to gather the documents (correspondence, minutes, daily reports, drawings) and order them chronologically to establish the sequence of events and each party’s responsibility — paving the way to analysis and recommendations.
Management Styles
Five Dispute-Resolution Styles — From Best to Weakest
After assessing the severity of the dispute, the project manager selects the most suitable style from five, varying in fairness and durability of effect:
Confrontation
The best style; the causes of the dispute are addressed and a suitable solution found that satisfies the parties on a fair and equitable basis. Its drawback is the relatively longer time it may require, and its success depends heavily on a genuine desire to reach an amicable solution that preserves everyone’s rights.
Compromise
Each party concedes some of what it claims in return for a compromise solution; resorted to when confrontation is not feasible.
Avoidance
The project manager may resort to this when unable to propose a solution that satisfies both parties, or where the dispute’s impact on the project is minor, and so refrains from intervening.
Smoothing
Aims at a temporary solution to the dispute, but may sometimes worsen the problem and leave the situation worse than before.
Forcing
The project manager compels the parties to comply with the decision taken, possibly at the expense of one party to the benefit of another — i.e. with a winner and a loser.
The decision taken is documented and may require issuing a variation order, increasing or decreasing the project cost and duration. A dispute may also escalate to the point of referring to the contract terms for the prescribed resolution mechanism — such as mediation, arbitration or the courts.
Why It Matters
The Importance of Dispute Resolution & Negotiation
Proactive handling protects both the project and the relationships:
Preserves relationships
Safeguards trust and cooperation between individuals and organisations.
Boosts productivity
Resolves disputes quickly to reduce interruptions to the work.
Reduces stress
Addresses disagreements constructively and prevents escalation.
Encourages creativity
Prompts the parties to explore innovative solutions.
Legal & commercial value
Effective negotiation prevents costly litigation and enhances positive outcomes.
Tools & Obstacles
Effective Techniques and Standing Challenges
Techniques that improve the chances of a mutually beneficial agreement:
And challenges requiring patience, skill and professional guidance:
The Decisive Timing
Why Is Change & Dispute Management So Important?
Across the project lifecycle, many events affect time, cost or scope. Handling them early prevents them turning into formal disputes or lengthy, costly arbitration. The most prominent of these events:
Scope of Services
Our Technical Dispute & Change Management Services
Five areas covering the journey of a change from inception to closing the dispute:
Change Management
Developing and implementing effective systems to manage technical and contractual change.
▸ Assessing technical & contractual changes
▸ Studying their time and cost impact
▸ Preparing and documenting variation orders
▸ Reviewing related quotations and supporting negotiation
Technical Dispute Analysis
A comprehensive technical analysis of the disputed events to determine cause, responsibility and impact.
▸ Reviewing contracts and technical documents
▸ Analysing correspondence and minutes
▸ Studying the sequence of events
▸ Determining causes and responsibilities and assessing technical, time and financial effects
Contractual Claims Management
Preparing and assessing claims and preparing contractual notices and supporting documents per the contract.
▸ Extension of Time (EOT)
▸ Additional costs and variation works
▸ Delay and disruption
▸ Differences in scope of works
Pre-Arbitration Settlement
The best dispute is one resolved before arbitration or the courts; we support early settlement with all its tools.
▸ Negotiation between the parties
▸ Technical dispute-resolution meetings
▸ Mediation and amicable settlement
▸ Assessing the chances and risks of each option
Technical & Legal Support for Arbitration
When the dispute escalates to formal proceedings, we provide specialist technical support.
▸ Preparing the technical dispute file
▸ Organising and analysing documents and correspondence
▸ Preparing programmes and technical analyses
▸ Supporting tribunals and counsel and preparing independent expert reports
This service connects with claims preparation, technical & legal litigation support, the technical opinion and expert reports.
Our Methodology
Our Approach to Managing Disputes
A structured methodology focused on facts, documents and evidence, in six stages from studying the contract to closing the dispute.
Study the Contract & Relevant Documents
Reading the contract, its appendices and technical documents to establish the contractual framework, obligations and procedures.
Gather & Analyse Technical and Contractual Evidence
Compiling correspondence, minutes, reports and drawings and ordering them chronologically to build a documented narrative.
Identify the Causes of the Dispute and Its Effects
Analysing cause and effect, determining responsibilities and assessing the impact on time, cost and quality.
Assess the Available Resolution Options
Weighing the paths: negotiation, settlement, mediation or arbitration — assessing the chances and risks of each option.
Prepare a Suitable Strategy
Charting a strategy for negotiation, settlement or arbitration that serves the client’s interest at the least cost and shortest time.
Follow Implementation Through to Closing the Dispute
Accompanying the solution step by step to closing the dispute and documenting any resulting variation orders.
Value Added
The Value We Bring to Our Clients
◆ Reducing the likelihood of disagreements escalating into formal disputes.
◆ Protecting the contractual rights of all parties.
◆ Improving change and claims management and enhancing the chances of early settlement.
◆ Supporting evidence- and fact-based decision-making.
◆ Reducing the project’s time and financial risk.
About the Expert
Mohamad Basel Al Najjar — Senior PM, Expert & Arbitrator
As a senior project manager alongside my expert and arbitrator roles, I deal with disputes from inside the project rather than only from outside it — from documenting the ‘issue of disagreement’ and assessing its severity, through managing variation orders, to settlement or arbitration. This practical perspective makes management preventive before it is curative.
◆ Senior project manager, accredited engineering expert and arbitrator.
◆ Experience in change and variation-order management and contractual claims.
◆ Technical dispute analysis, determining responsibilities and time and financial impacts.
◆ Experience with FIDIC contracts and contractual dispute-resolution mechanisms.
◆ Supporting pre-arbitration settlement and preparing technical files when a dispute escalates.
Related services: Claims Preparation · Expert Reports · Construction Arbitration.
Coverage
Sectors We Serve
In assessing changes and claims, we draw on the FIDIC suite of contracts published by the International Federation of Consulting Engineers (www.fidic.org) as the international reference for risk allocation and notice and assessment mechanisms.
Contact Us
Facing a Technical Dispute or a Change Affecting Your Project?
Contact us for an independent professional assessment that helps you understand your technical and contractual position, and take the right decision to protect your project’s interests and achieve the best possible outcomes.
Note: This content is provided for general professional guidance only. It does not constitute binding legal advice in any live dispute, nor does it create a retainer. The service is provided in line with engineering principles, professional best practice and the dispute-resolution mechanisms set out in the contract; coordination with a UAE-licensed legal practitioner on legal and procedural matters is recommended. Contact us to discuss your needs.
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