Construction Contract Disputes

When construction disputes arise, it is vital that you have an effective, early and successful resolution. With any construction contract, the intention is for the project to run as smoothly as possible from the outset, with parties hopeful that the works will be completed on time and to budget. However, projects do not always go as planned. The construction industry has a reputation for attracting disputes. Additional works may be requested by the employer or works may become necessary because something unforeseen is discovered on site. These scenarios are likely to result in works taking longer than expected which, in turn, will generally result in an increased cost to the project. This will often lead to a claim by one of the parties if it cannot be resolved through negotiation. Traditionally, parties would enter into litigation, which is a costly and lengthy means of resolving a dispute. Over the years, various methods of alternative dispute resolution (ADR) have been introduced in order to avoid expensive litigation. In this article, construction contract disputes, we take a look at the options open to you.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you deal with construction contract disputes, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help you avoid making mistakes, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

Typical causes of dispute

These can include:

• A contractor claiming against the employer for delay or a change to the scope of works
• A professional consultant claiming against the employer for non-payment of fees
• The employer claiming against a professional consultant for shortcomings in the design or a failure to properly supervise the works
• The employer claiming against the contractor for delay or defective works

Alternative Dispute Resolution

Alternative dispute resolution, which is often shortened to ADR, is the umbrella term given to the various methods used to settle disputes that do not require court proceedings. Many businesses and individuals are eager to solve their disputes in a quick, cost-effective and confidential way, and ADR brings the opportunity to do so.

There are, however, both advantages and disadvantages to all ADR. ADR comes in many forms, and among the more commonly used methods are:

• Mediation
• Negotiation
• Neutral evaluation
• Use of ombudsmen and other regulatory bodies
• Arbitration
• Adjudication

Mediation

One of the most time and cost-effective ways of solving a dispute, mediation involves working to reach a mutual agreement so that going to court – and all the added expenses and hassle this involves – can be avoided.

Many individuals and businesses opt to go down the mediation route because of the financial benefits it brings, while another driving factor is the fact that mediation is not binding, so you can dismiss the agreement if you are not satisfied with what has been reached, and the court will not know of your decision.

Negotiation

Often representing the first step taken, negotiation involves approaching the person or organisation with whom you have the dispute to see if they want to take part. After which, you then deal with them directly. It is one of the most effective ways of solving a dispute and can be introduced at any stage of the process. It is also a very useful way to ensure you preserve a good business relationship with the other person or organisation.

Neutral Evaluation / Early Neutral Evaluation

This is the process of providing parties with a preliminary assessment of any relevant facts and evidence and serves to lay the foundations for further negotiations. It involves a third party, known as a Neutral, providing a reasoned opinion on the evidence brought before them.

Use of ombudsmen and other regulatory bodies

Matters can be referred to an ombudsman following the completion of an internal complaints procedure, and the ombudsman will make a ruling or recommendation based on the evidence presented to them. This ruling is not legally binding and the matter can still be taken to court if needs be, but the court will take the ruling into account when making its final decision.

Arbitration

Commonly used in disputes relating to construction, arbitration is a more formal method, which is governed by statute and sees the arbiter taking all evidence on board before making an enforceable award.

Adjudication 

This is often used in connection to specific matters within a dispute before those involved either reach a settlement or enter into litigation or arbitration. It can often prove a quick and cheap way to solve a dispute.

How we can help

We have a proven track record of helping clients deal with JCT contract disputes. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner and support and advise you with all the negotiations. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact Our Commercial Litigation Solicitors

It is important for you to be well informed about the issues and possible implications of alternative dispute resolution and litigation. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.

To speak to our Commercial Litigation solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Construction, Litigation, News Tagged as

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