Best Ways to Resolve Construction Disputes

If you’re the general contractor for a large construction project, you can bet that you will experience some hiccups along the way. Sometimes there may be minor issues that you can resolve easily with the client. In other cases, disputes can cause delays, cost money, and threaten the overall progress of your job.

While you may want to ignore these issues, you need to tackle them head on. Otherwise, they can get worse and lead to litigation.

Construction disputes can be costly and time-consuming if not handled efficiently. Here are some of the best ways to resolve them.

Negotiation

Negotiation should be the first step in resolving disputes. It allows both parties to communicate their concerns directly. It is informal, cost-effective, and preserves business relationships. A successful negotiation requires:

• Clear identification of the issue
• A willingness to compromise
• Open and honest communication

This method works best when both parties aim to be cooperative rather than become adversarial.

Mediation

Mediation is often used when disputes arise over contract interpretation, payment delays, or project scope disagreements. Mediation involves a mediator, who serves as a neutral third party. The mediator facilitates discussions to help the disputing parties reach a mutually acceptable resolution. Mediation is faster and cheaper than arbitration or litigation. It Provides flexible solutions tailored to the situation. It also helps preserve professional relationships by fostering collaboration. Keep in mind that mediation is non-binding, meaning parties can walk away if no agreement is reached

Arbitration

Arbitration is a more formal process than mediation. It involves an arbitrator, who is a construction law expert. They hear both sides and make a binding decision. It is commonly chosen because it is faster than litigation and it is private, keeping sensitive project details out of public records. Another benefit is that the decision is usually final, reducing prolonged disputes. However, arbitration can still be costly, and the binding nature means limited opportunities for appeal.

Litigation

Litigation should be used as a last resort due to its high costs and lengthy timelines. It involves filing a lawsuit and going to court to have a judge or jury determine the outcome. Litigation does have some benefits. It provides a legally enforceable decision and allows the gathering of evidence to ensure fairness. It’s also good for complex disputes, such as fraud or severe contract breaches

Litigation is ideal for cases where other dispute resolution methods have failed or when legal enforcement is necessary. However, it may damage business relationships due to its confrontational nature.

Contact Us Today

When there is a dispute about a construction issue, you should do what you can to avoid litigation. There are some first steps to take.

A Florida construction contracts lawyer from Linkhorst & Hockin, P.A. can discuss your issue and help you come to the best resolution. We can help you facilitate and enforce the terms of your construction contracts. Schedule a consultation with our office today by filling out the online form or calling 561-626-8880.

Source:

autodesk.com/blogs/construction/construction-disputes/