What Are Some Common Causes of Construction Disputes?

It’s common for disputes to arise from construction projects. From contract issues to a lack of risk management, read on to discover some of the most common causes of construction disputes.

Contract issues

Contract issues are a common cause of disputes between contractors and subcontractors, or clients and project teams. Sources of conflict can include disagreement on terms and conditions within the contract, or poor management of variations to the contract.

Different site conditions

Lack of clarity of changing conditions can cause problems. When the construction starts, the site condition can be different due to soil condition, subsurface conditions, unexpected structures and obstructions. Examples of differing site conditions include:

●     Soil that cannot bear the weight of the project

●     Solid rock underground instead of soil

●     Conditions within a building, such as the discovery of asbestos

●     Groundwater

●     Hazardous materials, gases, or biohazards

●     Underground rock formations or caves

●     Quicksand

●     Man-made objects of archaeological interest

●     Environmental impact roadblocks

These conditions can cause disagreements and disputes.

Conflict over construction delay

Most construction projects end up with more delays than planned. If the main contractor or any subcontractor doesn’t perform their duties by the deadlines or according to the project program, it can cause delays in the whole construction project. This can lead to disputes and even liquidated damages imposed on the contractor when applicable.

Poor construction quality

If the construction process is not according to the contract drawings and specifications, then it is a cause of disputes. Contractor must follow standards and specifications stated in the construction contract before handing over. Defects and poor quality results in conflicts among the parties.

Lack of proper risk management

All construction projects should have stringent risk assessments and guidelines designed to keep everyone safe. The more complex a project is, the more extensive the risk management assessment should be - when a company skips proper risk management, employees and the project itself are in danger. Therefore, a lack of proper risk management can cause construction disputes if employees feel they are being put in an unsafe position.

Unrealistic expectations

If a customer is likely to make unrealistic demands that cannot be accommodated within the price and time constraints quoted for that project, then disputes are likely to arise.

Conflict over payment claims

Disputes over payment claims in construction can take any number of forms - in major projects involving multiple parties, payment disputes can drag on in courts, holding up projects and draining resources. If you’re experiencing a construction project dispute, you needn’t panic; our quality construction dispute consultants at Simon Levy Associates can assist you with construction dispute resolution. Get in touch today for professional construction dispute advice.