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Fasken FAQ
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The difference between claims and disputes in construction is that claims are issues that may arise during construction projects relating to non-performance or mistakes. If claims are not addressed when first asserted, they can quickly devolve into disputes that are costly for all parties.
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If disputes are not resolved promptly, then it tends to drag on, escalate and can cause project delays, lead to claims, require litigation proceedings for resolution and ultimately destroy business relationships. Ultimately, it may degrade the quality of the work.
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Throughout this article, I will be explaining 3 prevalent factors that often give rise to disputes in construction contracts; these include poorly drafted contracts, quality concerns and payment claims.
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The difference between claims and disputes in construction is that claims are issues that may arise during construction projects relating to non-performance or mistakes. If claims are not addressed when first asserted, they can quickly devolve into disputes that are costly for all parties.
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Construction disputes are disagreements or conflicts between stakeholders of a construction project. The dispute can be between any two or more stakeholders like owners, contractors, subcontractors, and suppliers. The reasons for the disputes can be many.
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The four main methods for resolving construction contract disputes are negotiation, mediation, arbitration, and litigation. Prevention is critical: communication, progress tracking, clear payment terms, and record-keeping can all help to prevent a construction dispute from breaking out on your job site.
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