The Rationality of Cooperation and Prevention in Contract Management: Reducing Conflicts in Heavy Construction and Electromechanical Assembly in Brazil Through the Application of the Causal Mark Theory

Abstract: In this article, we argue that preventive contract management is essential to minimize conflicts in the heavy construction industry and ensure efficiency in project execution. Based on data from 324 heavy construction and electromechanical assembly contracts, including specific analyses of projects in the Mining Sector, it is demonstrated that projects with Contract Management exhibit significantly lower damage/conflict percentages compared to those that do not adopt this practice. Inspired by the ideas of “Use of the Arrow of Time and the Criteria for Transmission of Cause Marks in Conflict Management in the Construction Industry,” presented by Exxata at the 37th Annual IACM Conference, this study applies the “Cause Marks” theory to mathematically demonstrate how clear and well-defined records help prevent ambiguities and reduce the financial and temporal impacts of conflicts. Additionally, we present arguments supporting the thesis that cooperative and preventive attitudes are the most rational and beneficial approaches in any administrative or business environment.

Keywords: conflict resolution; preventive administration; cause marks theory; risk mitigation; litigation reduction; constructive claim management