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A Dispute Over Refinery Upgrades

August 4, 2015 by · Leave a Comment 

Construction turnaround services are planned years in advance to make sure that the impact to workflow is minimal. The extensive planning is to be sure that there are no mistakes, as extended down time is costly for the owners of the plant. During all phases of planning, it’s important to allocate risk and document everything. Here are some tips to help crews navigate construction disputes.

Designate Indemnity Provisions              

One of the most effective methods to stop a dispute before it starts is to designate an indemnity provision that puts financial responsibility on certain parties to perform a job without injury. These are usually part of a contract between contractor and owner, because the owner isn’t responsible for what happens on the site. If an accident occurs, for instance, the owner shouldn’t necessarily be at fault if he or she was not directly related to the cause of the accident. An indemnity helps provide some safety against that type of litigation.

Mediation or Trial

In cases where insurance doesn’t solve the issue, it may be necessary to take a dispute to court. At this point, both parties have the ability to mediate the dispute if they are willing to do so. Private mediation will help both parties arrive at a mutually beneficial decision, and it doesn’t carry the risks of trial. With trial, the outcome of a case can shatter relationships in addition to bringing financial burden. Mediation can help mitigate some of that risk, but it’s important to approach mediation with an open mind. Typically, both parties accept some fault during mediation but the outcome is typically beneficial to everyone involves.

Bio: Lyle Charles Consulting is a firm that specializes in commercial and residential construction projects, including management and turnaround services. Lyle Charles is also licensed as an expert witness and structural steel expert.

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