Guide To Construction Disputes

Construction disputes can occur for any number of reasons, both in the public sector and the private sector. Each case is different, but what is the best method of resolution? This article explores the five main ways a construction dispute can reach a successful conclusion.

Types of Construction Dispute Resolution.

From a property owner, a project manager or a developer, construction disputes can involve a number of different people and a variety of complaints. Some of the most common grievances include:-

* Property damage;

* Design issues;

* Defects;

* Payment issues;

* Delays.

Whatever the nature of a construction dispute, there are 5 main ways in which to achieve a resolution:-

1. Early Neutral Evaluation.

This works as a preliminary assessment of the dispute in question, and can potentially lead to a resolution before other, more formal proceedings have to be undertaken.

A neutral third party - often a specialist construction solicitor - will assess the facts, evidence and legal technicalities of the claim, before providing an unbiased but professional opinion of each side's position. By shedding light on what the likely outcome of the dispute will be should the dispute go to court, each party can reflect upon their situation and consider whether further proceedings are in fact appropriate.

2. Mediation.

Mediation is a form of Alternative Dispute Resolution, and is similar to Early Neutral Evaluation in that an impartial and independent third party such as a solicitor is appointed to act as a dispute mediator. Where mediation differs, however, is that each side meets in an agreeable location and discusses their objections face to face. Afterwards, the dispute mediator communicates separately with each party in an attempt to find a solution which works for both sides. If an agreement is reached, action through the courts is not necessary, making it a cost-effective approach both in terms of time and money.

3. Adjudication.

In 1998, adjudication was introduced to settle disputes that occurred under contract. While this means only a party to a construction contract can refer a dispute to adjudication, it is the most popular way of resolvnig this particular type of disagreement.

The process involves employing a third-party adjudicator, who will then assess the dispute and offer a legally binding decision within an allotted time period - usually 28 days. This method of resolution is designed to find a solution as quickly as possible, which must be adhered to by both parties unless the dispute goes on to be determined by legal proceedings or arbitration.

4. Arbitration.

Under the 1996 Arbitration Act, it became possible for construction disputes to be taken before an impartial 'Arbitrator'. This is usually an individual who is familiar with dispute, and who has been selected by both party's. The Arbitrator will then consider the dispute and provide a verdict, known as an 'Award', which is legally binding. The extent of arbitration proceedings depends on each case: a small dispute can be heard by written submissions alone, but if it is a more complex dispute a hearing or tribunal may be necessary.

5. Litigation.

Litigation, in which the dispute is resolved in court, is usually a last resort as it tends to be the most expensive and prolonged option. However, if every other method has failed or is simply not suitable, litigation will at least provide a definitive conclusion to the dispute.

Summary.

Construction law is a very complex area of legal expertise. If you have a commercial dispute you wish to resolve, it is best to seek legal advice as soon as possible. This way you will be made fully aware of all your options, and you can decide what course of action, if any, is best for you.

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