The construction industry is a complex and competitive environment and other than the main parties to the contract, there are several other parties involved. The complex nature of work often leads to disagreements between the parties, leading to claims and disputes. Often many companies resort to Alternative Dispute Resolution (ADR). ADR is a process for resolving disputes between two or more parties without resorting to litigation. Some of the common reasons for disputes in construction projects are:
● Changes in the project scope
● Errors in contract documents
● Delays and disruptions.
Different forms of ADR are mediation, conciliation, negotiation, arbitration and litigation.
Here are some of the advantages of ADR and how can a dispute resolution company help:
1. Cost-effective: ADR is less expensive than a trial. The discovery process of trial is expensive as it involves exorbitant attorney fees, court reporter fees and many other expenses. Besides, a long drawn out court trial will require both parties to take time off their work to attend hearings. As ADR is less time consuming, it is more cost-effective.
2. Faster resolution: Given the complex nature of construction projects and pendency in Indian courts, it can take years for a case to resolve.
In the case of ADR, resolution can be achieved faster. An arbitration award can be received or a settlement can be expected in much shorter time than time taken in court matters.
3. Maintenance of confidentiality: ADR is conducted outside of the court, which means that records of the dispute are not public records. This can be especially beneficial for construction companies, as confidential information about project costs, schedules and materials are often used in ADR process. By avoiding going to court, construction companies can keep their business information out of the public eye.
4. Preserve professional relationships: In the construction industry, disputes are often inevitable. ADR provides a more efficient and effective way to resolve construction disputes. Conflict is a natural part of doing business, whether it’s a disagreement about the scope of work or a billing issue. Litigation can damage relationships between parties and make it difficult to move forward on future projects. By amicably resolving the problem, the parties can maintain a business relationship in which they invested time, money and effort.
5. No bias: During mediation, both parties obtain the help of a neutral third party (the mediator /Arbitrator) to help them resolve the dispute. Arbitration is more formal than negotiation and mediation. An independent arbitrator hears both sides of a dispute before coming to a decision. Both mediator and arbitrator are neutral figures who are not associated with conflicting parties.
How can Contract Square Pvt Ltd help in construction dispute resolution?
As a leading dispute resolution company, we have some of the best dispute resolution experts on board. They can help your construction company to carry out review of documents, claim identification, quantification, drafting of correspondence, advisory on adoption of right dispute resolution channel assistance in proper documentation so that the same sustains judicial scrutiny if so required. We help with identifying the root cause of claims to build concrete substantiation of the same with backup documents. We also advise and assist in conciliation, mediation and arbitration proceedings. To know how we can help you in resolving your disputes, call us at 9051739355 and our experts shall be delighted to assist you.