The
construction industry is arguably one of the most conflict ridden industries -
by default making it one of the most claim-ridden sectors. In most cases, the
parties involved would enter into a litigation process, often costly and
involving a series of long, drawn out proceedings. Over time, alternative
dispute resolutions have been implemented as a solution to avoid expensive
litigations. Nevertheless, there are a couple of simple strategies that can be
implemented at various stages of the process to decrease the likelihood of
disagreements, and ways to effectively resolve them with little or no harm to
the project. In this guide, we've listed some proactive measures that can be
taken to reduce the likelihood of disputes relating to your construction project.
Why do construction disputes arise?
Essentially,
the root of the majority of construction conflict stems from a fundamental
disagreement between the parties involved within a contract. This is due to a
potential violation of the construction contract and the obligations set out
within the contract. Disputes can also be a result of:
●Lack of knowledge of the conditions
of a contract
●Delays in the contractual
agreement
●Failing to administer the contract
●Uncompleted claims made by the
parties involved
A dispute
itself does not constitute as a breach of contract. It could however evolve
into one and progress to a termination of the contractual agreement. To lower
the risk of disputes arising, all involved in the project need to cooperate and
be extremely thorough in the planning and execution of a project. This would
include making significant plans way in advance of any work being done and
carefully reading and understanding the contract. Other key points to consider
are:
●Negotiating any unclear clauses
●Being efficient with the
pre-construction work, putting together estimates, schedules and contacting any
subcontractors
●Make sure your schedules are
realistic
●Identify any risk factors in advance
and contact any specialists
●Generally dealing with problems as
and when they arise - do not postpone them
Strategies to resolve disputes
Most
projects have a tiered dispute resolution process. This includes a series of
formal steps to follow and then negotiations involving senior management. Another
option is to use a mediator to assist in the negotiation process, and as a last
resort arbitration or litigation. Negotiation is certainly the best case
scenario for resolving a dispute. This is not only more cost effective but will
also give more control to those involved without involving outside parties. If
a dispute arises - it's certainly advisable to look over the contract and seek
guidance on your legal position. Disputes are par for the course on any
construction project, but with cooperation and empathy - for the most part
legal proceedings can be avoided.
Not all projects run smoothly, and if disputes
do occur, Simon Levy Associates are here to help. Our expert and professional
construction dispute consultants
can help you work through this process, keeping it as simple as possible.
Get in touch
today to find out what
we can do for you.
