Project Conflicts - Are You Handling Them Right?

It is a rare project that has no conflicts, problems, disputes, change orders, or claims.

An important goal in managing your scope of the project is to avoid formal claims by you and by your subs and suppliers.  Even where a formal claim cannot be avoided, every party has the same goals in resolving it – finishing the project and maintaining profits.

Your initial approach to a problem often dictates not only how quickly and painlessly it is resolved, but whether the parties walk away looking forward to doing business together in the future or hoping to never lay eyes on each other again. 

I learned an important lesson early in my engineering career from my first manager.  I was told that I was welcome to come to him with problems, but I had better come with my recommended solutions as well.  This sage advice served me well in managing my managers, but I realized its usefulness when I’d run into problems with projects I worked on as well. 

It doesn’t matter whether the problem relates to unclear or conflicting plans, or you’re experiencing delays, by offering suggestions as to how the issue could be resolved is a good way to create a collaborative atmosphere and expedite the solution.  This approach translates well when seeking direction through a Request for Information (“RFI”). For example, instead of just pointing out a conflict in the plans, or that the plans are missing some necessary items to make the project work, provide a suggestion for correcting the issue in the RFI.  But remember, if your suggested plan would result in you incurring extra costs or time, be sure to include the costs or the need for more time in the RFI.    

Adopting a collaborative style does not, and should not, mean that you let people bulldoze over you, or you grow sloppy in following the contract procedures.  Knowing your rights and duties under your contract is the foundation of the collaborative style. It may not seem like you are being collaborative when preserving your rights, but being in the collaborative mindset can help keep tempers in check when dealing with controversial issues among the project teams. 

A simple, but often overlooked technique is to actually talk to the person you are dealing with and explain that you are going to have to document a situation prior to sending out a strongly worded email or demand.  And, responding to demands placed on you in a well-reasoned, non-emotional manner generally results in others treating you the same way.  Again, picking up the phone and discussing it before you document your response in writing goes a long way.

In many situations, your ability to identify potential troublemakers early on, goes far in handling issues collaboratively as they come up.   There are a number of early warning signs that may signal future trouble if not monitored closely.  Early warnings signs of potential trouble based on conduct coming from an owner, architect, owner’s construction manager or even the prime contractor can include:

• Not providing a project schedule at the start of the project;

• Rejection of submittals for minor non-conformances;

• Unreasonable delays in responding to RFI’s;

• RFI responses that are vague or merely direct you to consult with the plans when the plans do not contain clear direction;

• Failure to timely process change orders;

• Issuances of 24 or 48-hour notices for minor field problems;

• Issuances of 24 or 48 hours notices to cure or be terminated that do not follow the contract procedures;

• Complaints that you are “papering” them to death when you document issues to preserve your rights;

• Refusing to put “directives” in writing;

• Getting behind on submitting/processing payment applications or failure include approved change orders in the payment request;

• Wanting to “table” all disputes until the end of the project – especially when resolution would result in money coming your way.

When these issues start to happen, they can have a snowball effect and turn into major issues that seriously hamper your ability to perform and your ability to get paid.  You need to be super vigilant to not let the project, or accusations, get out of control.

But it’s not always from the top down, there are several early warning signs of trouble that may come from the direction of a subcontractor as well.  The signs can include:

• The early submission of excessive documentation for delays and “problems” being blamed on others;

• Early and excessive RFI’s where the answers can easily be found in the plans;

• Delays in administrative tasks such as daily reports, submittals, and payment applications;

• Poor documentation for claims of delay or changes;

• Failure to follow procedures in the subcontract, which could mean they did not read it, or worse, they are overwhelmed with the process.

It is important that you follow your contract procedures even if others do not, and respond in writing to any allegations about your conduct or complaints about your work.  If someone seems to take offense that you are documenting potential or actual problems or delays, remind them in your writings what the contract requires and that you are following contract procedures.   

Finally, a collaborative approach to resolving project issues does not mean you should strive to make everyone your friend.  What it does mean is that you should strive to approach every situation calmly and professionally. The collaborative approach helps keep problems from escalating to a point where egos and hurt feelings overshadow reasonableness in finding a mutual resolution. Working with a “team” mentality also reduces your own stress as you work through the problem toward a resolution that doesn’t break the bank and that everyone can live with. 

Never forget that everyone’s goal is to complete the project on time and profitably!