Top Tips For Resolving Construction Dispute
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.
