Conflict and disagreement is an inevitable part of the workplace, especially on municipal construction projects due to the large number of entities and individuals involved.  Conventionally, disputes between contractors and municipalities often escalate and result in legal action.  Delays, increased costs, legal fees, and acrimonious relationships result, none of which bring positive results to the municipality involved.

Conflicts can be dealt with through appropriate dispute avoidance or settlement systems.  Alternative dispute resolution (ADR) systems seek to resolve disputes and find mutually satisfactory settlements without litigation, at a fraction of the cost in money and time.  ADR systems may include the use of a “standing neutral” who meets regularly with project participants to address and help resolve disputes as they arise; or it may involve the use of mediation to help parties try to resolve their disputes before resorting to litigation.  

Municipalities should consider budgeting 0.25%-0.40% of the total project cost for a formal project-specific ADR process. Bid specifications and contracts between the municipality and land owners, designers, and contractors should include terminology requiring at least mediation of any dispute before litigation.  An even better approach would be for municipalities to initiate an ongoing ADR process that promotes resolution of conflicts or disputes as they arise.  Development and implementation of such an ADR process should be done by using a mutually acceptable outside independent resource working with the stakeholders.  The state can help to promote the use of ADR by requiring its use on construction projects that rely on state subsidies, such as transportation projects or school construction.  

The use of an ADR specialist is distinct and complementary to the project manager now required for municipal construction projects over a certain size.  Dispute avoidance professionals have specialized training that project managers rarely have.  Rather than focusing on day-to-day coordination and guidance, dispute avoidance specialists focus on conflicts among the project participants, which may from time to time include the project manager. 

11.a    MAPC should collaborate with Massachusetts Office of Dispute Resolution to develop and implement a program to help municipalities use ADR on municipal construction projects

11.b    Massachusetts School Building Authority should encourage municipalities to incorporate ADR into school construction/renovation contracts.

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