What is a construction dispute? Construction disputes are disagreements between the parties involved in a contract. They most commonly arise in an owner and a contractor relationship, but can also emerge from suppliers, subcontractors, real estate developers, and architects.
We have had a look at the research and have compiled what we believe are the top 6 causes of conflict or dispute in construction projects. Variations and changes. Delays by a contractor. Errors and ambiguities in design and planning. Customer preventing progress. Client's unrealistic expectations.
Arbitration is the method contractors and lawyers prefer when it comes to dispute resolution. Most contractors list it as the way to address disputes in contractual terms. If the parties opt for arbitration, they must choose a neutral third party with the relevant experience to bring them to an amicable solution.
Poorly drafted contracts invite not only confusion and conflict, but also litigation and a damaged reputation. Some contracts include language or clauses that place the blame on project managers or contractors when issues like underruns, defects, injuries and delays occur—even when your company is not at fault.
'Construction dispute resolution' is an umbrella term for the process used to deal with and settle a conflict that arises out of a project involving stakeholders to a construction contract – for example, property owners, suppliers, contractors and subcontractors.
Ing to John Burton (1990), a dispute is a short-term disagreement that can result in the disputants reaching some sort of resolution; it involves issues that are negotiable. Conflict, in contrast, is long-term with deeply rooted issues that are seen as “non-negotiable” (1990).
Unforeseen site conditions, bad weather, labor disputes and sluggish supply chains can lead to claims for unreasonably slow work or unacceptably high costs. To minimize disruptions or delays, engage in careful preconstruction planning, mindful staffing and realistic scheduling. Put contingency plans in place.
'Construction dispute resolution' is an umbrella term for the process used to deal with and settle a conflict that arises out of a project involving stakeholders to a construction contract – for example, property owners, suppliers, contractors and subcontractors.