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How to Prevent and Resolve Construction Disputes

Construction disputes aren’t rare and can take a ton of time to resolve without the proper contract. These disputes cost a lot of money and waste valuable time and resources.

However, there are several steps you can take to avoid the likelihood of a dispute developing. If a dispute does develop, there are critical steps you can take to resolve it quickly. 

To help you stay prepared, here is everything you need to know about construction disputes. 

What Are the Main Causes of Construction Disputes? 

The main cause of construction disputes is the failure to understand or follow the terms of a contractual agreement. If the language written in a contract is vague and unclear, it leaves grey areas. This can lead to arguments and disagreement about the project.

Another common cause of construction disputes is errors and omissions built into contract documents. Owner-directed changes related to constructional design can also lead to disputes. 

Ways to Avoid Construction Disputes 

There are several steps you can take to avoid construction disputes. This includes reviewing the contractual document and ensuring the language is clear. Because this is a common cause of dispute, it’s imperative that you ensure the agreement is clear and that both parties understand.

You can always have a legal expert or company like Built review the contract to ensure there aren’t loopholes or grey areas. 

Another way to prevent construction agreements is to monitor jobs, create an accurate schedule, and stay up to speed on rules and regulations. 

It’s also important to avoid last-minute design changes as much as possible.

How to Solve Common Construction Disputes 

If you become involved in a construction dispute, you shouldn’t wait to take action. Define your issue in writing and only include the necessary parties in the discussion.

In your written document, focus on the facts and avoid establishing blame. Allow the facts to speak for themselves and create action items for resolving the plan.

What is the resolution you want? What are steps that can be taken to reach this plan?

Finally, be sure to review the document and ensure you’ve discussed your terms clearly. Once you’ve finalized the document, you can send it over to the appropriate parties for them to review and discuss. 

It’s important not to let your frustrations or negative feelings fester during this time. Let the contract and legal document sort themselves out and try not to let the process overwhelm you. 

Now You Know How to Avoid and Resolve Construction Disputes 

These are the most important things to avoid and resolve construction disputes. Keep in mind that sometimes you can’t control all the variables and a dispute can arise despite your best efforts. 

If this happens, it’s crucial that you take action fast and document as much as possible.

Hiring an experienced legal expert can make a huge difference in helping you resolve the conflict successfully. Remember, knowledge is power! 

And for more helpful tips related to negotiating business disputes, be sure to check out the rest of our blog. We have a ton of other helpful articles for navigating potential disputes!