AWWA JAW10834

Today's uncertain construction costs coupled with overly competitive bidding make cost overruns and claims by contractors in the heavy construction industry almost inevitable. Negotiating such claims, although time- consuming, can be an equitable means of settlement. Each party's position must be documented from the beginning of the project before claims exist, and positions must be clearly defined when negotiations take place. All parties must be willing to compromise. The roles of the parties in the disagreement are defined, the construction environment is described, and tactics that permit settlement by negotiation are discussed.