A construction contract dispute can arise for any number of reasons. Whatever the details, the conflict typically breaks down to one of four main issues: a lack of understanding of the contract, delays in the contract, a failure to abide by the contract or unsubstantiated claims of a violation of the contract.
Whichever issue led to the dispute, those who are in the midst of this type of disagreement know it can wreak havoc on the project’s schedule. Some resolution options to get the project back on track can include the following.
#1. Negotiation.
Ideally both parties will be able to talk it out — to come up with a resolution after some discussion. This is generally the first option that both parties will attempt and could involve some compromise on either side.
#2: Mediation.
If negotiation on your own is not fruitful, you can bring in a neutral third party to help guide the conversation. This is one form of alternative dispute resolution.
Another option that is similar but can result in a more legally binding resolution is arbitration. This also involves a neutral third-party guiding the discussion, but that individual or business generally has more experience in the issue.
#3: Litigation.
If alternate forms of dispute resolution do not work, one party can sue the other. This can result in a number of different resolution options, including a demand that the other party complete their end of the bargain and/or monetary awards to compensate for any lost revenue or additional expenses that accrue as a result of the conflict.