Contract Administration Guidelines for Managing Conflicts, Claims, and Disputes under World Bank–Funded Projects

Abstract

Conflicts, claims, and disputes could be considered an unavoidable consequence of the construction process. The frequency and severity of conflicts, claims, and disputes can significantly increase under the World Bank–funded projects, in which many multinational and multicultural stakeholders are involved. World Bank projects are managed through the standard bidding documents for procurement of works (SBDW) in which the conditions of contract included in the SBDW (i.e., WB Contract) are based extensively on the conditions of contract for construction published by the International Federation of Consulting Engineers (FIDIC). Most U.S. contractors are more familiar with the families of contracts issued by the American Institute of Architects conditions of contract (namely, the A201) and are less familiar with the FIDIC conditions of contract. This paper uses a two-step research methodology to present comprehensive contract administration guidelines to deal with conflicts, claims, and disputes including unforeseeable physical conditions, employer’s risks, force majeure, and delay damages. The guidelines presented in this paper should promote efficient and effective management of the World Bank contracts and consequently, high-performance project outcomes. Ultimately, the World Bank will be more enabled and aligned to attain its mission and objectives because neither the Bank nor its associated stakeholders will suffer from lengthy dispute resolution problems during the course of their projects.