In the world of construction, agreements and contracts are the backbone of every project.
However, sometimes disagreements arise, which can jeopardize the success of the construction project. In such situations, it is important to know how to handle a construction contract dispute effectively.
1. Open communication
One of the most effective ways to resolve a construction contract dispute is through open and honest communication. Parties involved should engage in discussions to identify the root cause of the disagreement. This involves sharing concerns, expectations and potential solutions. It is important to maintain a professional tone and actively listen to the other party’s perspective.
2. Review the contract
Before jumping to conclusions, take the time to review the construction contract thoroughly. Ensure that all parties understand their respective responsibilities, obligations and deadlines. Sometimes, disputes arise due to misunderstandings or misinterpretations of contract terms. By going through the contract together, you can pinpoint areas of contention and work toward a resolution based on the agreed-upon terms.
3. Change orders
Construction projects can be dynamic, and unforeseen circumstances may arise. In such cases, change orders can be a valuable tool for resolving disputes. A change order is a written agreement that modifies the original contract to accommodate changes in project scope, timeline or costs. By documenting changes and obtaining the necessary approvals, you can address issues promptly and avoid disputes related to project alterations.
Addressing disputes promptly and professionally can save time and resources while preserving relationships within the construction industry. That is especially important as the industry faces many challenges that have led 50% of respondents in a recent survey to state that they expect project delays or cancellations in the upcoming year.