The umbrella term used for disputes between stakeholders in the construction industry such as Property owners, contractors, sub-contractors, and suppliers is known as construction dispute resolution.
- Defects in the execution of the project, variation from the originally agreed scope of work, cost overrun and quality issues. The use of substandard materials and deviations from contractual obligations are some of the common causes of dispute.
- Disruption in the construction work leading to delays and cost overruns are common issues in this industry.
- Payment dispute is a major issue in the construction industry and the main reasons are delays in payment to workers, suppliers, sub-contractors, and other stakeholders of the project. Also, claims for invoices not paid are common disputes.
- Comprehensive Contract Drafting
Complete contract writing It is critical to have clear, well-drafted, and enforceable contracts in place from the start: this cannot be overstated. Ensuring you understand the contract well can pay dividends if an issue arises; this implies you’re familiar with the actions the contract specifies if such a problem arises, as well as the technique or ways of dispute resolution mentioned in it.
- Ways of resolving Construction dispute
There few ways that can potentially resolve construction dispute resolution uk though it is recommended that adjudication should be the preferred way of going about first.
Though an adjudicator’s decision is binding on both parties, it is designed in such a way that the solution is interim or temporary till the parties go to court for litigation, or arbitrator or mutual settlement as per the party’s agreement. Adjudication is cost-effective compared to litigation.
The primary goal of construction arbitration is to settle difficulties equitably by selecting a neutral third party agreed upon by the parties to monitor the process and give an award (judgment). The parties must agree to participate in arbitration, and a formal clause outlining the procedure must be included in the contract.
Another technique of conflict resolution that takes place outside of court is mediation. Again, a neutral and appropriately competent third party – the mediator – will assist ‘without prejudice’ conversations between the parties to find a viable solution that is mutually acceptable to all parties concerned.
Litigation and the Pre-Action Protocol
The stages in The Pre-Action Protocol for Construction and Engineering Disputes must be undertaken before parties to a construction contract can issue (starting) judicial action. The Protocol’s main goals are to encourage parties to lay out their cases and provide enough information to the other party/parties so that everyone understands each other’s position, increasing the likelihood of the issues being narrowed and possibly settled or dealt with by one of the above-mentioned dispute resolution methods.