Construction disputes can pop up for a number of reasons and it is always important for the parties to know how to respond and what to expect when they do. To help avoid future construction disputes, the parties can address potential concerns early on. It is important for the parties to thoroughly negotiate and understand their contract and make sure extensive planning is done beforehand; ensure pre-construction work is conducted; ensure schedules are realistic; and document changes or challenges associated with the construction project. In addition, there are other additional measures the parties can take as well to try to avoid problems down the road.
In general, construction disputes can arise because or a poor understanding of the contract; delays in violation of the contract; a failure to properly administer the contract; failure to perform the contract or complete the work or failure to complete the work in a timely fashion; if the work is not performed up to reasonable workmanlike standards; and in other circumstances as well.
Once a contract dispute has arisen related to a construction project, there are a variety of methods for handling the dispute and addressing the concerns of the parties. Methods of resolving the construction dispute can include negotiation, mediation, adjudication, expert determination, arbitration and construction litigation. The method for resolving the dispute that is selected should be carefully considered and match the needs and goals of the party seeking to resolve the dispute.
The process of resolving a construction dispute can be complex, and may also include considerations related to insurance companies and surety bonds, which is why trained guidance can help sort out the concerns facing the parties. Because construction disputes can lead to delays and be costly for the parties, it is important that parties to a construction dispute are familiar with the legal options available to help them resolve their construction dispute and smoothly as possible.
Source: Construction Executive, “Six Tips for Successfully Resolving Construction Disputes,” June 7, 2017
