In the construction industry, disputes are costly and time-consuming disruptions that can arise over contractual disagreements.
While major claims often draw attention, it is the smaller and everyday conflicts that can drain time and profit across projects.
Issues such as delayed payments, a defect or a disputed variation may seem minor, but the hidden costs can exceed their face value.
Our Construction Law director, Layna Thompson, offers her expert advice on how to handle small disputes.
How can you protect yourself from disputes?
Small disputes often arise from matters such as poor communication and documentation, as well as ambiguous contract terms.
These can be avoided with simple measures, such as starting with drafting and reviewing a clear, enforceable contract that defines payment and variation procedures.
Maintaining consistent record-keeping and reporting systems, including progress updates and conversation history, can provide clear evidence if a dispute arises.
The emergence of a dispute can be intimidating for any business, but establishing clear communication and regular updates with the other party could prevent it from developing.
How can a small dispute end up costing employers?
Even a short delay can impact your project’s schedule, delivery deadlines and completion targets.
Lost days can result in lost revenue, so taking action in negotiating or mediating disputes can keep your project moving and reduce costly downtime.
When conflicts do arise, managers and site teams are often pulled away from their work to deal with paperwork and meetings.
Reaching out to a legal team can help you handle the procedural and contractual legalities and allow you to prioritise your time on delivering your work.
Avoid the lasting impacts of a dispute
The hidden costs of construction disputes can undermine a project’s success and leave a lasting impact on your business’s reputation.
Disputes can easily strain connections with clients or suppliers, so finding the balance in protecting your interests whilst preserving relations is necessary.
With proactive risk management and legal guidance, you can prevent a small dispute from being a costly setback.
For advice on how to prevent or protect your company from a dispute, please contact our team.