Ways to Settle Construction Disputes

Dispute Resolution

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Disputes are unfortunately quite common in the construction industry. Disputes not only delay construction projects, but they also adversely impact the financial viability of the project, leading to delays and troubled relationships. But all these can be avoidable to a certain extent. Before we dwell upon strategies to settle disputes, we must understand why a claim is raised.

What is a claim? Why does a claim arise?

A claim is a request for compensation not anticipated in the terms of the contract signed by parties. These claims can be a result of disagreements over timelines, performance, or any deviation from the original contract terms.

Why should disputes be settled quickly?

Maintaining good business relations is essential for all parties. Moreover, construction disputes can cost your business valuable time and money if they are not resolved quickly. As one of the leading dispute resolution service provider, we share useful insights on ways to settle construction disputes:

  1. 1. Communicate and negotiate: The best and the most inexpensive way of resolving disputes is for all parties involved to sit down and talk. Keep the lines of communication open and negotiate a settlement. This is the most efficient way to settle a dispute with the least impact on your business. During negotiations, clearly communicate your issue and what you expect from the other party. For negotiations to work, it is important to be relevant, specific and to the point. This can help your business relationship stay alive. Both parties can have their negotiators represent them or they can negotiate with each other directly.

  2. 2. Seek mediation:  If you cannot resolve the dispute by communicating with the other party, you may seek mediation.  A mediator guides both parties to find a resolution. Through joint sessions and separate caucuses with parties, a mediator can help both sides to move closer to resolution. Once an agreement is reached by the parties, it can be confirmed in a written agreement that is then binding. It is a cost-effective option to settle a dispute without going to court.

  3. 3. Request for arbitration: It is a more structured process than mediation but more flexible than litigation. Under the process of arbitration, a neutral third party or panel of third parties known as arbitrators are hired. For arbitration, consent is needed from both parties. An independent arbitrator acts as a judge and the decision is binding on both the parties.

  4. 4. Go to court: Litigation should be your last resort as fighting a court case is time-consuming and expensive. Moreover, in litigation, everything is a matter of public record. This means even sensitive commercial information also becomes public. With arbitration and mediation, everything remains confidential within the parties and stakeholders.

Looking for a dispute resolution service provider?

In the construction sector, time and money is of great essence.  We, at Contract Square Pvt ltd, have dispute resolution experts on board who can help your construction company with contract management and dispute resolution. Our contract experts review and continuously monitor and evaluate to ensure perfect execution within the project scope. In case disputes arise, our dispute resolution experts help to carry out negotiations to ensure the financial viability of the project for our client. Call us at 9051739355 to know how we can help you. 

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