Construction projects are considerably expensive and high-stress jobs involving a wide variety of processes and persons. They may include owners, project managers, contractors, suppliers, and builders. All these individuals work in collaboration with each other in a system to make the project execution smooth and successful.
However, execution of construction projects requires massive equipment, material, and human resources as well as effective management to accomplish everything on time. The longer a project becomes, the more complications arise owing to delays, soaring costs, and many other reasons.
Once a dispute arises in the construction project, all contractual parties consider a suitable course of action to get through it successfully. For instance, when a delay occurs in the completion of the construction project, assistance from professionally-sound delay expert is sought to resolve the dispute. However, disputes harmful because of time requirements and reputation concerns.
Why Do Disputes Arise In Construction?
The constructions disputes are basically the disagreement arises because of conflicts between the contract parties. It may be owing to real or perceived violation of obligations under the contract. Further causes can be:
- lack a clear understanding of the contract conditions
- misconduct or breach in the contract
- delays in work completion
- failure to manage or administer the contract
- Incomplete or unsubstantiated claims from any individual
How to Reduce the Chances of Disputes
It is imperative to seek optimized aspects of managing the process of construction in order to minimize the likelihood of disputes occurrence. It should not only be done at the initial stages but should be observed as a rigorous process throughout the whole project.
Generally, the procedure of effective resolution for construction disputes starts with the contract signed by all parties. The contract should be comprehensive to meet the requirements, aspiration, and objectives of owners, contractors, suppliers, and construction managers.
Primary preventive measures to ensure smooth execution of construction projects are as given:
- Conduct an in-depth analysis of all aspects including requirements and risk factors involved in the project
- Create a detailed plan before starting the work
- Include every single detail in the contract to be on the safe side
- Before signing the contract, read it carefully again and again
- Negotiate everything which seems murky or problematic clauses
- Analyse every risk factor which may hinder project execution. Consider the aspect in which the services of a delay expert should be sought.
- Make a realistic schedule based on accurate estimation, risks analysis, and estimated predictions.
- Maintain documents for every process as per the execution, daily reports, and accomplishment reports.
Methods of Resolving Construction Disputes
The given methods are used from the step of defining contract statements to dispute resolution clauses. Let’s have a detailed overview as follows:
A clause of negotiation fundamentally includes everything that is being agreed upon by all parties in case a dispute arises. It is a process to figure out peaceful resolve through discussion and argumentation.
Generally, the project owners and contractors attempt to reach a satisfactory resolution to solve the issues before moving on to the next processes.
A mediation clause included in the contract suggests a third party can get involved to resolve the dispute between contracting parties.
Mediation does not impose any legal binding to resolve matters as decided but it is considered as an effective means of resolution in case the situations are deteriorating.
It is similar to the meditation except all the parties will have to obey the decision in any way. It means that all individuals seeking resolve from a third party should comply with the decision taken by a mediator. However, it is not a legal binding to accept the decision.
Arbitration is similar to adjudication and meditation except for the fact that it is a legal binding to all the involved parties. If the arbitrator has taken a decision, it is imperative for the contractor, owner, suppliers, and broken everyone will have to comply with the obligation of choice.
Expert determination is sought as an alternative to mediation. In this method, services of professionally knowledgeable and experience wise specialist individual to decide the objection or dispute.
For instance, if an unnecessary interruption or suspension occurs in the project causing a delay and one party comes into a disagreement with the justification. It is effective to hire services of a delay expert in order to make a justified decision based on facts and situation.
Finally, taking the dispute to court for legal assistance is the method of prosecution. It is actually the process of filing a case in the respective court of the state.
To sum up, claims cannot serve the interest of any contracting party in the construction sector. It is owing to the factor that it requires time and effort to reach a final resolution. Therefore, it is better to design construction contract in a way that can help to minimize the probability of disputes.