Types of Specifications
Classification of Specifications
0 of 4 Steps CompletedMethods of Dispute Resolution
Construction Dispute Resolution Flow
Standard escalation path for resolving construction disputes under CIAC.
Step 1: Negotiation
Direct talks between the Owner and Contractor to resolve the issue amicably.
Step 2: Mediation
A neutral third party assists the disputing parties in reaching a mutually acceptable settlement.
Step 3: Arbitration (CIAC)
If mediation fails, the dispute is brought to the Construction Industry Arbitration Commission. An arbitral tribunal renders a binding decision.
Step 4: Appeals
Arbitral awards are generally final, but can be appealed to the Court of Appeals on questions of law.
From Informal to Formal
0 of 4 Steps CompletedExample
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
CIAC Case Flow
0 of 6 Steps CompletedPerformance 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.