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Trust: A key factor for success or failure in a Construction Project

Trust: A key factor for success or failure in a Construction Project

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Continuous trust between owner and contractor is one of the key factors that determines success or failure in a construction project. When trust waivers, commonly more disputes arise, which in turn become claims, litigation and lengthy negotiation process, causing the project to suffer substantially. On the other hand, when a trustworthy relationship can be maintained between owner and contractor, disputes are commonly resolved amicably, usually in a quicker and more efficient way, which leads to better results for the project overall.

Nonetheless, maintaining trust is usually easier said than done. Owners and contractors are faced with a divergence or misalignment in goals, financial objectives and level of pressure at different levels and phases during a large construction project.

This session will present a case study of a refinery project in Latin America that was at the brink of derailment due to the diminishing trust between owner and contractor, and how the role of technical mediator was key in rebuilding trust and achieved substantial changes in negotiation positions by both parties, thus bringing the project back on track.

Carlos Ortega

Senior Director, Infrastructure & Capital Projects for Alvarez & Marsal

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