Read the scenario below, consider the pros and cons
of the legal options available via litigation and alternative dispute resolution to resolve the dispute and provide recommendations as to how the company should address the issue with the general
contractor.
Scenario:
You are the executive in charge of North American operations for a large foreign oil company that is
constructing a massive $6 billion natural gas processing plant in Pennsylvania. Construction will take
several years and must adhere to a strict schedule to avoid the loss of millions of dollars from any delay in
the commencement of the plant’s operations. Early in the construction phase, a structural deficiency related
to a construction defect involving concrete used in the foundation of the plant is discovered during a routine
building code inspection.
The general contractor is denying responsibility for the problem and the sub-contractor that performed the
concrete work has suddenly filed for bankruptcy and ceased operations. You also find that managers in
charge of construction have not documented all conversations and communications with the general
contractor and some e-mails have been intentionally deleted by company employees who feared punishment
from the company once the problems came to light.
