Application of Computer Simulation in Resolving Construction Disputes

Abstract

Mediating construction disputes arising from changed conditions involves reviewing contractor's estimates prior to construction, analyzing the motives for the claim and determining the owner's and designers' responsibilities. This process can be enhanced by using applicable computer‐based tools such as simulation. This paper discusses the use of simulation in the mediation process. CYCLONE models are developed to analyze part of a claim between the public owner and a steel contractor. In particular, simulation models are developed to estimate the cost of the operation as envisioned by the contractor at time of bidding and to estimate the cost of the operation after the change. The two models give an accurate picture of the direct costs involved the additional costs incurred due to the added complexity resulting from the change. The paper reviews the complexity claim, discusses the operation that is the subject of the dispute, and presents the CYCLONE models developed to assist in the mediation.