The evaluation of construction disputes: A risk approach

Disputes frequently occur on engineering and construction projects. In this paper it is argued that these disputes need to be evaluated and managed, with proper attention being paid to planning of time and money. Since the way in which dispute management is approached will depend on the perceived self-interest of the parties, it is imperative that disputants have a sensible measure of their self-interest. Traditional' probabilistic risk assessment techniques are shown to be of assistance and can be used to compute appropriate dispute management strategies. By way of example, a Monte Carlo simulation of a dispute is performed and discussed.