If a construction dispute arises, the parties involved start to wonder about how it can be sorted out. And this uncertainty becomes much easier and easy to handle if they have assistance from dispute management services offered by certain service providers.
But we must understand the circumstances under which these disputes or disagreements arise. Let us quickly go through a few of the instances when disagreements may arise. There maybe-
- If there is a real violation of the construction agreement and the obligations contained in the document therewith.
- Deferring a contract
- Failure in the lack of administration of the contract
- Incomplete claims that are unsubstantiated by either of the parties
Having understood the circumstances under which these disputes occur, let us find out how you can solve the disputes. Here we will highlight the 6 ways you can adopt for resolving disputes.
What are the 6 ways you can incorporate the dispute resolution process in a construction project?
You can follow and incorporate these measures for solving construction disagreements. The same can be mentioned while you make the draft.
- Negotiation
This is the first step that you must consider in solving any dispute. In this method, it is expected that the project owner and the contractor attempt to reach a solution that is acceptable to both. This procedure is tried before you opt for the other 5 processes.
Benefits:
- It saves and fosters healthy business relationships.
- Flexible
- A quicker way to solve disputes
- Informal method
- Mediation
In this procedure, the contract agreement will contain a clause according to which a neutral third party will be involved. This is the second dispute resolution process that is documented in the draft. However, just remember that there is no legal binding to follow this process. Nevertheless, this method can serve to prevent further deterioration of the situation.
Benefits:
- Helps in maintaining a business relationship
- The time frame is short, might take just 2-3 days
- Less expensive as compared to litigation
- The mediator is neutral and will not judge
- There is a lot of confidentiality
- Expert involvement
This process is regarded as an informal way of the dispute resolution process. One of the main instances when such a situation arises is when there is a dispute related to the valuation of the project. Once the parties agree to the mediation, the decision will be binding on the parties.
Benefits:
- A less expensive and quicker way of dispute resolution.
- Much more economical way of approaching
- Adjudication
This dispute resolution process also involves using the expertise of a third party. However, the difference between this process and that of mediation is different. While a mediator offers solutions and assists parties to resolve differences, the adjudicator gives a decision.
Benefits:
- This process ensures that there is no stoppage in cash flow while the construction process is underway.
- The individual offering the decision is not involved in the daily operations of the construction project.
- Arbitration
It is an alternative method of resolving disputes. The arbitrator which is also a third party takes charge of the disagreements between the parties.
Benefits:
- Mediation and arbitration are both confidential procedures.
- In court proceedings, matters might get delayed but in this process, it is quicker.
- Both parties can decide upon an arbitrator
- Hire the services of dispute management services providers
Before the situation gets out of hand and both parties head for litigation, it is best to hire the services of dispute management services providers. We have expertise of several years in handling even the most complex of all situations.
Benefits:
- Less expensive
- Mutual and agreeable to both parties
At ContractSquare, we have simplified even the most complex of all disagreements related to construction projects. There are legal experts in our panel that will not let your efforts go in vain. To contact us mail us at enquiries@contractsquare.co or call +91 9903023893.
