Whenever a construction dispute arises, the parties involved put in their best efforts to resolve the issue at the earliest. This is the right approach in the interest of both parties because it is time-consuming, and tarnishes the reputation of the contractors or builders.
Not just that, but it also puts a strain on the relationship between the client and the contractor. So, what are the measures that you can adopt so that such a scenario can be kept at bay? This is exactly what has been discussed in the write-up.
Disputes management – Measures to take.
Remember, resolving construction disputes is of utmost importance because the sooner you do it the better it is for the contractor and the client. It will prevent any delay in the project and will save money, time, and effort.
Tips for effective disputes management
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The clause in the negotiation method includes that in the event a dispute arises between the project owner and the contractor, both parties will take an approach wherein the dispute will be resolved between the two parties before they try out other dispute resolution procedures.
A mediation contains a clause that will involve including a third party when such a scenario arises. The third party will be a neutral one and will help both parties by mediating. The mediation procedure is not legally bound. It can serve as one of the better methods of solving conflicts before the condition further deteriorates.
3. Expert determination
This is an alternative to mediation. This method is appropriate if a dispute comprises a dispute related to valuation and requires the opinion of a specialist. Remember, expert determination is not enforced legally provided both parties agree to such a resolution process. Those methods that have to be opted for other than the three may harm the situation further.
This method also involves the role of a neutral third party. However, unlike the mediation process, the one who adjudicates does offer a decision. On the other hand, the mediator assists both parties to explore different dispute management solutions. The adjudication clauses encompass the probability to apply to a court for enforcing the decision of the adjudicator in the event the dispute is not resolved on its own. This method is cost-effective and helps the progress of the operation as the resolution is underway.
If both parties have agreed to proceed toward arbitration, again there will be a neutral third party entering the scene so that the differences can be resolved. In this process, the parties usually agree to the arbitrator with relevant exposure to get involved in the matter. Facts and documents are checked by the arbitrator. If the parties do not come to an understanding, the arbitrator will give a decision that might favor one of the parties. This procedure might have legal bindings depending on the jurisdiction the case is under. This is an expensive process and might be higher in comparison to the other methods and at times even more than the costs you incur on the legal proceedings.
The method of litigation is included in the dispute clause as well. It includes trial, is legally binding, and is enforceable. However, it can also be appealed. Litigation is thorough, a slow process, complex, and above all expensive. And for this reason, the parties try to resolve the disputes by employing other methods. Under such circumstances, approaching a reliable Dispute management service is your only alternative so that you do not have to reach this stage at any cost.
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