I have had the opportunity to sit in on contract and pricing discussions over the years on a wide variety of projects. Some of them are simple and straight-forward others are large and complex. I have also had the opportunity to participate as an expert or as an arbitrator when disputes develop over cost reimbursable contracts and pricing. The disputes can get real ugly, real fast!
The one thing that always amazes me is that one or more of the parties usually, but not always, must believe the other party is just plain stupid. They may think the other party doesn’t understand contract terms, pricing or the scope of the work. In some cases they think they can pull a fast one on the other party.
This belief is not just held by the owner or developer it can reside with the construction manager, designer, prime contractor, subcontractor and/or the material and equipment suppliers. There does not appear to be any limit to who thinks the other party is stupid.
When this attitude occurs on a project, usually from the beginning, it upsets a delicate balance that would normally occur between the parties. This balance would tend to avoid disputes. From what I have observed, this upsetting of the natural balance actually tends to shove the parties into an adversarial position more often than not.
Pushing one or more parties into an untenable position on a contract, a project or any endeavor can lead to unwarranted delays and cost increases. How does this benefit anyone?
