PMG has an established reputation for expert determinations, known as “Schiedsgutachten” in Switzerland. Advice and expert opinions are essential to optimise contract performance, to understand complicated issues, or to protect precise interests. PMG’s added-value advice is expressed by expert members of the firm, who rely on over sixty specialists in specific fields of engineering.
The risks of differences, disagreement and disputes are inherent to any agreement process. PMG has experienced that unforeseeable events create unwelcome pressure on the parties. Disagreement on interpretation of contractual provisions – which is no more than a mere difference of opinion – can snowball into an extended dispute when left unmanaged.
ADR stands for all forms of amicable dispute resolution – Mediation being but one of them – to help parties reach a settlement agreement. In Mediation, a relevant individual known as the “Neutral” conducts the procedure based on consensus and trust. The MEDALOA procedure (Mediation and Last Offer Arbitration) is an additional proven technique.
Even with sincere efforts to avoid disputes, the parties migth end up facing each other in arbitration or litigation cannot be excluded. PMG has observed that Arbitration, a private, confidential and tailored dispute resolution technique, is often less time-consuming and expensive than litigation.
An arbitrator-engineer would be welcomed in some cases by the Parties and the Tribunal. PMG’s over 25 years of experience in international arbitration qualifies them to be arbitrator-engineers or to be named as technical experts.
PMG’s partners have been involved in ad hoc and institutional arbitration cases settled under the rules of the International Chamber of Commerce (ICC). They are fluent in the rules of other institutions such as the “Camera Arbitrale Nazionale e Internazionale di Milano”, the “Internationales Schiedsgericht der Wirtschaftkammer Oesterreich”, the Cairo Regional Center for International Arbitration, UNCITRAL, etc.
By working at contract’s conception PMG can reduce the potential damage and the impact of differences. Including dispute resolution tools in the initial conditions of contract reinforces efficient claims management.
Before:
During:
After:
In construction or industrial contracts, energy is notoriously channeled to technical, financial and political issues as well as internal and external communication. However, PMG strongly recommends foreseeing sufficient resources for potential claims management issues.
At strategic level:
At operational level:
At dispute resolution phase (arbitration or litigation):
| Origin of claims: | % |
| Delays in completion | 78 |
| Employer's planning / coordination | 20 |
| Design changes | 20 |
| Increase of manpower, strikes | 15 |
| Delays of third parties, subcontractor | 15 |
| Climatic conditions | 9 |
| Acceleration of Works | 6 |
| Source: Dr. H.W. Swoboda, Methoden für Quantifizierung und Nachweis von Zusatzansprüchen. | |
Dispute Boards are ideally set up at the outset of the contract and remain in place throughout its duration. The three types of DB are: Dispute Review Board, Dispute Adjudication Board and Combined Dispute Board. DBs assist Parties in resolving disagreements by rendering determinations either in the form of a Recommendation or a Decision. PMG recommends this tool for mid- to long-term contracts.
PMG partners have gained valuable experience as DB Members and as chairs of Dispute Boards in countries such as China, Egypt, Ethiopia, Iceland, Italy, Lesotho, Luxemburg, Portugal, and Qatar.
A PMG partner chaired the ICC DB Task Force and drafted the new ICC DB Rules, which came into force on September 1, 2004. These Rules are considered as the most balanced and modern existing rules worldwide.
Our specialists exploit their professional experience and international exposure, finding individual solutions to situations that might disrupt your professional activity.