Types of Specifications
Classification of Specifications
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Methods of Dispute Resolution
Comparing Dispute Resolution Methods
Negotiation
Direct discussions between the parties involved without third-party intervention. It is the cheapest and fastest way to resolve an issue, but it requires cooperation and willingness from both sides.
Speed / Resolution TimeFast
Financial CostLow
Outcome
Non-Binding
Party Control
High
From Informal to Formal
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Example
Dispute Scenario: CIAC vs Regular Courts
Contractor A and Owner B have a dispute over millions of pesos in unpaid change orders. Their contract contains a standard CIAC arbitration clause.
Owner B decides to file a lawsuit in the Regional Trial Court (RTC).
Outcome: The RTC judge must dismiss the case because the CIAC has original and exclusive jurisdiction. The CIAC was specifically created by EO 1008 to handle construction disputes because its arbitrators are seasoned engineers, architects, and lawyers who understand construction technically, unlike regular judges. The dispute must be submitted to the CIAC.
The CIAC Arbitration Process
An overview of the step-by-step procedure when filing a case with the Construction Industry Arbitration Commission.
CIAC Case Flow
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Performance vs. Prescriptive Specifications
Example
Scenario: The Concrete Spec
Specification A: "Concrete shall be mixed using 1 part cement, 2 parts sand, and 4 parts gravel with a water-cement ratio of 0.45."
Specification B: "Concrete shall attain a 28-day compressive strength of 4,000 psi (27.6 MPa)."
Application: Specification A is a Prescriptive (Method) Specification. The contractor must follow the recipe exactly. If the concrete fails to reach 4000 psi despite following the recipe, the owner bears the risk. Specification B is a Performance Specification. The contractor can use any mix design they want, provided the final product meets the 4000 psi requirement. The contractor bears the risk of achieving the result.