The construction industry is a complicated one. All projects require legal documentation, various parties, and a huge capital. Considering the complications of construction projects, disputes are bound to arise. Minor disputes are quicker to resolve and don’t do much damage.
However, if any dispute is disruptive enough, it can ruin the project completely and bring it to a halt. Therefore, you must understand construction dispute resolution. Every dispute is different, and solving them can be challenging.
We’ve prepared a complete guide on construction dispute resolution.
Common Causes for Construction Disputes
Construction disputes may arise due to numerous reasons. Here are some common causes for construction disputes.
Contract Issues
One of the top reasons for construction disputes is contract issues. Sometimes contractors and subcontractors may fail to deliver according to the contract clauses, leading to disputes.
When such mistakes occur, the involved parties fail to gather on the same page, creating differences and issues.
Scope Changes
Sometimes owners realize they want more from the contractors, which can create a rift between the parties involved. Scope changes during the project can create issues for the contractor and jeopardize their profits.
Construction Delays
Construction delays are common in construction projects. Schedule, payment, and other delays are quite common dispute issues that can disrupt a construction project’s progress.
Moreover, other problems may include labor issues, unsubstantiated or incomplete claims, and more.
Methods of Construction Dispute Resolution
Mediation
Mediation involved the parties voluntarily meeting in the presence of a neutral third-party mediator to avoid any biases. This meeting is often private and confidential. Both parties then try to work out their disputes before a mediator.
The mediator assists the parties with their diplomacy to reach a middle ground that both parties accept. This process doesn’t involve any evidentiary aspects. However, if a middle ground is met, it can be enforced by law. Mediation is effective for resolving minor construction disputes.
Negotiation
The simplest and the most effective way to settle and resolve construction disputes is by discussion. Communication can be an excellent way to resolve disputes. Both parties should meet up, discuss their issues, and try to get to a common ground. If this isn’t possible, the parties should try negotiating.
If the discussion fails to settle the disputes, it can still be valuable since it highlights the issues and problems, giving the parties a clear picture of the dispute.
Arbitration
Most contractors opt for arbitration to resolve a dispute, and it is a quick option. Arbitrations usually have a panel of two or three arbitrators, and it’s similar to a trial where evidence is analyzed. The arbitrator poses as a judge, but it doesn’t include the law.
The arbitrator considers evidence from both parties and makes a decision. The parties are then free to agree or disagree with the arbitrator’s decision. The arbitration duration strictly depends on a dispute’s complexity.
Adjudication
Adjudication includes third-party decision-makers examining the evidence and facts and coming up with a solution. This method involves a judge and a court. Therefore, the decision is legally binding for all involved parties.
Get Expert Assistance
Professional assistance can often speed up things and settle disputes more effectively.
If you’re looking for professional advice, consider HPM Consultants.
HPM Consultants offers the best Delay Claim Analysis Services Orange Country in the US. We assist owners, contractors, and attorneys settle disputes by offering expert guidance on how to deal with construction delays. Whether you’re the owner or a construction company, their team consists of expert and well-versed professionals who can guide you in the best possible manner.
Visit our website to get in touch with us.