Construction Dispute Resolution

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Disputes in the construction industry happen all the time. Misunderstandings around contracts, timelines, or changes to the scope of work can spring up to knock a job off course.

As a result, the relationship between the parties to a construction contract can suffer, leading to bad feeling – or worse, a severe financial hit.

Cooper & Hall offer advice to help clients avoid disagreements, helping keep a project on track, monitoring the programme (schedule) and budget. And if conflict arises we have solutions to navigate around prickly issues, leading to the best result for all parties.

C&H’s trusted advisors have worked for main contractors, specialist subcontractors and developers; we know the tricks of the trade. That wealth of industry knowledge informs every decision, either to make a compelling argument for the client, or to tell them they don’t have a case.

This open, honest approach, aiming to minimise disruption and diffuse escalation, leads to very good outcomes for clients, allowing them to focus on the job in hand.

Common causes of Construction Disputes

Cooper & Hall’s understanding of why relationships break down on construction projects helps them formulate workable solutions.

These are some of the common causes of friction:

Contract misunderstandings –
Contract terms and conditions need close attention at the outset. Misunderstandings down the line, involving a lack of clarity and misinterpretation, are a main cause of dispute.

Delayed payments and financial disputes –
Cashflow is the lifeblood of the construction industry . When payments are delayed it causes worry, strains relationships and disrupts schedules. Clear financial terms need to be spelled out in the contract.

Quality of Work and Compliance issues –
Parties to a construction project can come to loggerheads over the standard or compliance of work. Starting out with clear quality standards and regular inspections can nip quality issues in the bud.

Changes to Scope of Work –
Any changes to a project should be documented in accordance with the contract and agreed by all parties with an understanding of how they will affect timelines and costs. This can lead to dispute – or worse, loss of entitlement to be paid – if not properly managed.

Programme mismanagement –
Delays can lead to disputes over deadlines and costs. Effective contract management, with realistic scheduling and allowances for unforeseen problems, are key to managing the timeline.

Communication breakdown –
Regular, clear, documented communication between parties is essential in avoiding misunderstandings before they escalate.

Unrealistic expectations –
When all parties set realistic targets for a project’s scope or budget – with regular reviews and adjustments as needed – it can help avoid disputes.

How Cooper & Hall can help

When disputes arise the team at C&H work alongside clients to unravel disagreements around payment, contract interpretations and delays.

Payment disputes –
We dig deep to understand why there is financial conflict. This involves examining work agreed at the start of a contract, payment terms and difficulties that have arisen. The aim is always to reach a speedy, satisfactory conclusion.

Conflict analysis –
Years of experience have taught us the best way to understand the cause of a dispute is to sit down with clients for a step-by-step run through of a job. Armed with all the facts we can get to work to find a resolution.

Contract review –
Understanding contracts is our bread and butter at C&H. We scrutinise contracts looking for areas that may cause disagreement. We are then able to offer clear advice on suitable remedies.

Negotiation support –
Wherever possible C&H look for amicable solutions to construction disputes. A general agreement that satisfies all parties is preferable to escalation in search of a resolution.

Professional relationships –
During a construction project, it’s important for all sides to work together amicably. Wherever possible we look to foster a collaborative atmosphere in times of conflict.

Post-conflict wash-up –
Once the dust has settled on a dispute it is important to review why it happened, the lessons learned and how to stop similar incidents arising and escalating. C&H hold seminars for clients passing on their knowledge and experience to ensure others are more commercially and contractually aware.

Cooper & Hall’s methods for Conflict Avoidance and Dispute Resolution

To save clients time, aggravation and unnecessary expense, C&H advise:

Clear contractual agreements –
Start with accurate, comprehensive contracts, including scope of work, payment schedules and procedures.

Effective communication –
If conflict appears likely, act early to resolve issues before they escalate. Avoid misunderstandings by having regular meetings, clear documentation and agreed updates, between everyone involved in a project.

Document management –
Keeping records of all contracts, correspondence, changes to the scope of the job, and approvals, can help clarify misunderstandings and resolve disputes.
If an incident looks like getting serious, proper documentation forms the basis for resolution.

Risk management –
Identify risks at the start of a project and agree a strategy for dealing with them. Regularly review these plans throughout the job.

Training –
Help your colleagues to help themselves by giving them the knowledge of the causes of common disputes and resolution techniques. This will help them prevent conflicts.

It is always less painful – and significantly less costly – to avoid formal dispute resolution. Alternative Dispute Resolution (ADR) methods are typically faster and less fraught than going to court. C&H can support on the following:

Negotiation –
Having an open, honest discussion between the parties involved can be the simplest, quickest way to a resolution, preventing a slide towards formal proceedings.

Assistance –
A C&H specialist can act as a third party, helping all sides reach agreement. This informal approach often allows for more creative solutions

Adjudication –
C&H offer full support and representation in adjudication, mitigating costly legal fees incurred in more formal proceedings. An adjudicator’s decision is temporarily binding until finally determined in litigation or arbitration. Although in our experience adjudication can often bring a dispute to a close, or prompt further negotiations from a position of strength.

For more information on how C&H can help avoid or manage construction disputes contact