Specifications and Dispute Resolution

Specifications

Construction specifications are the written requirements for materials, equipment, systems, standards, and workmanship for the work, and performance of related services. They complement the drawings and form part of the Contract Documents.

Types of Specifications

1. Prescriptive Specifications:

   • Specify the means and methods of construction.
   • Describe exactly the materials to be used and the installation procedures.
   • Example: "Mix 1 part cement to 2 parts sand to 4 parts gravel."

2. Performance Specifications:

   • Specify the required results, the criteria by which the performance will be judged, and the method of verification.
   • Allow the contractor flexibility in choosing materials and methods.
   • Example: "Provide concrete with a compressive strength of 3000 psi at 28 days."

3. Proprietary Specifications:

   • Specify actual brand names, model numbers, and manufacturers.
   • Closed Proprietary: "Use Brand X Model Y only."
   • Open Proprietary: "Use Brand X Model Y or approved equal."

4. Reference Standard Specifications:

   • Require a material or product to comply with a standard specification.
   • Example: "Cement shall conform to ASTM C150 Type I."

The CSI MasterFormat

The Construction Specifications Institute (CSI) MasterFormat is the standard for organizing specifications and other written information for commercial and institutional building projects in the US and Canada (and widely used in the Philippines).

Dispute Resolution

Disputes are common in construction due to the complexity of projects. Efficient resolution is crucial to project success.

Methods of Dispute Resolution

1. Negotiation:

   • The most informal method.
   • Parties attempt to resolve the issue directly between themselves.
   • Pros: Fast, inexpensive, preserves relationships.
   • Cons: May not succeed if parties are entrenched.

2. Mediation:

   • A neutral third party (mediator) facilitates negotiation.
   • The mediator does not decide the outcome but helps parties reach a settlement.
   • Pros: Confidential, non-binding (unless agreement is reached), flexible.

3. Arbitration:

   • A formal process where a neutral third party (arbitrator) or panel hears evidence and makes a binding decision.
   • In the Philippines, construction disputes are often handled by the Construction Industry Arbitration Commission (CIAC).
   • Pros: Expert decision-makers, faster than litigation, finality.
   • Cons: Can be costly, limited appeal rights.

4. Litigation:

   • The traditional court system.
   • Pros: Public record, strict rules of evidence, right to appeal.
   • Cons: Slow, expensive, adversarial, judges may lack technical expertise.

CIAC and Executive Order No. 1008

The Construction Industry Arbitration Law (EO 1008) created the CIAC to have original and exclusive jurisdiction over disputes arising from, or connected with, contracts entered into by parties involved in construction in the Philippines.