When there is a construction dispute, all parties to a contract may find themselves in the middle of confusion, not knowing what to do. Construction disputes can happen as a result of a disagreement between parties who are involved in a contract.
These disputes cannot be considered a breach of contract, but they can lead to a breach of contract or possible termination. This is why parties in a contract must take important steps to lessen the chances of any disputes or resolve construction disputes. In this guide, you will learn the ways to resolve construction disputes.
Before you look to resolve any disputes, you need to evaluate the reasons that lead to construction disputes. Construction disputes can arise due to disagreements between parties involved in a contract. The violation can be seen or confirmed as one of the contractual obligations by all parties. Three critical factors that can result in construction disputes are problems with behavior, contract, and other contractual issues.
Basic contracts already describe the risk and obligations that every party needs to bear. Due to the firm nature of these agreements, they might become unsustainable with time and can force parties involved in the contract to operate in an uncertain manner.
When there is uncertainty in any contract, it can lead to shifts in the risks and obligations among the parties involved. Disputes can also happen due to perceived risk allocation changes within the contract. This is when construction dispute lawyers Perth need to be called.
As a result of the nature of construction projects, there are different ways in which construction disputes can arise. Some of the common forms of construction disputes are as follows:
Most people are familiar with the quote ‘time is money,” and the same applies to construction projects. When there is a change in the finish date, it can lead to enhanced project costs. Contractors may also suffer from extra fees due to equipment or ideal labour.
Equipment rental charges can happen even when the equipment is lying idle. Workers and their supervisors may be idle, and this can result in unrecoverable costs. This is why changes in finishing dates can put more pressure on the contractors and can also affect the other projects. This can lead to a great profit loss.
When there is a delay, the party responsible for it needs to issue a notice in the form of a letter, writing, or electronic mail. The written statements need to be clarified and passed on total information to all the project stakeholders. Delays can lead to disputes as to who must bear the responsibility for them.
The majority of construction contracts deal with delays by increasing the time taken for completion. The owner has the right to recover all the damages due to the delays from the contractor. Specific conditions under a contracting state that a contractor needs to give notices on any conditions or circumstances that can lead to delays before time.
Before you look to resolve construction disputes, you need to learn about the types or causes of construction disputes. Any issues in design can also lead to extra costs, which can cause delays when there is no planning sequence followed for the release of design information that can affect construction.
Design teams might also cancel their responsibilities, leaving the contractor in jeopardy of independently solving design problems. The contractor can assume the risk of imminent design failures when this is done.
Subcontracted companies that are engaged in huge construction contracts might employ a lot of personnel. Each company might have its own goals and commitments that do not match the goals of other important players in the project. This can easily result in disputes in the construction project.
Disputes can also occur due to the quality of materials that are used. Sometimes the specifications can be unclear on the conflicts, and every party might have different views on if the quality is as per the contract specifications.
Parties can have different opinions on if the craft and quality are sufficient. This might lead to additional costs that might also lead to costly disputes if they are left unchecked.
It is unlikely that a project will get completed without any disputes arising. It is seen that most dispute resolution processes are often considered afterthoughts by contractors who focus mainly on price and scope. But it only takes a bad experience to take dispute resolution more seriously.
You can resolve a dispute in the following ways:
Negotiation is usually considered the first portion of dispute resolution. This is the way when parties in a dispute try to reach friendly conclusions amongst themselves before moving further to other means of dispute resolution. It can be considered the easiest and least expensive option to yield better results.
Before opting for construction dispute lawyers, you need to learn about this way of resolving a dispute. However, mediation is not a legal method of resolving conflicts but is an effective way of getting out of a situation before it turns worse. Parties can look to come to a resolution outside the court before looking for other means.
It is a method that lawyers and contractors use for dispute resolution. This is the preferred way for most contractors to address disputes in contracts. If parties opt for this process, they need to choose a neutral third party that has relevant experience to come to a solution. Compared to
The arbitrator gives the final judgment on the conflict in the mediation process.
This is a resolution process that involves trials. Litigation includes trials that are enforceable and legally binding. It is considered the most complex, thorough, and costly dispute resolution procedure. Though the process is slow, most parties opt for this type of dispute resolution process.
No matter the kind of dispute you are involved in, including construction disputes, you need a third party to resolve the issue. If you want to resolve construction disputes, you can opt to associate with Civil Lawyers Perth WA for access to the best lawyers in the area who can help resolve disputes.