Building Design and Construction Handbook - Merritt - Ventech!

THE BUILDING TEAM—MANAGING THE BUILDING PROCESS 2.31
minimize disruption of the design and building process. If the dispute cannot be
resolved by the parties, various methods of resolution are offered that include
settlement, mediation, arbitration, and litigation. To maintain insurance coverage
and protect appropriate interests, proper notification to insurers or involvement of
legal counsel is required.
Settlement of Disputes. Disputes between two parties should be addressed quickly
and, if at all possible, a settlement should be rendered and recorded. Settlement
can be in the form of monetary adjustments or payments, free services on behalf
of the architect to remedy or correct an error, or such other agreement between the
two parties. It is recommended that this method of dispute resolution be used whenever
possible to avoid time, cost, and anguish, which can occur as a result of
mediation, arbitration, and litigation.
Mediation. In mediation, the parties in dispute agree on a third independent party
to act as a mediator and hear each side’s position in the dispute in an attempt to
mediate a resolution. Mediation is not binding on either party but helps resolve
certain disputes due to a third party’s focus on, and question of, the issues.
Arbitration. This is a method of handling disputes in which an arbitrator or arbitration
panel, often consisting of three members, is selected to hear the positions
of the parties in the dispute and decide on a potential resolution. The resolution is
binding on the parties. Cost and time for arbitration is usually, but not always, less
than that required for litigation. The arbitrators usually consist of professionals
(architects and engineers), lawyers, contractors, or other parties involved in the
building industry.
Litigation. In the event settlement or mediation cannot resolve a dispute and the
parties do not wish to arbitrate, the only remaining course of action is to litigate
the dispute. This requires that much time and money be expended for depositions,
document and other discovery, and preparation for trial. The final results are rendered
by a group of individuals (the jury) or judge not involved in the building
industry. Therefore, a possession of a thorough knowledge and understanding of
issues affecting the architectural and engineering profession and construction industry
become the responsibility of each party’s legal counsel to establish a true
and accurate picture of each party’s position and the facts in the case. See also
Art. 17.14.
2.29 PROFESSIONAL ETHICS
The American Institute of Architects has formulated the following basic principles
for guidance of architects:
Advice and counsel constitute the service of the profession. Given in verbal, written,
or graphic form, they are normally rendered in order that buildings with their equipment
and the areas about them, in addition to being well suited to their purposes, well planned
for health, safety, and efficient operation and economical maintenance, and soundly
constructed of materials and by methods most appropriate and economical for their
particular uses, shall have a beauty and distinction that lift them above the common-