Regardless of the type of construction project and parties involved, it’s unlikely for collaborations between companies not to encounter some kind of disagreement. Construction disputes often arise from contract violations, behavioral issues, delays, and various other factors. While arguments are not always major issues and can easily be mitigated, some instances may lead to contractual terminations and significant costs.
To protect your company, it’s best to partner with a professional construction dispute resolution lawyer throughout the collaborative process. Having a lawyer present through every step of the project will reduce the likelihood of encountering major, costly disputes.
Options to Resolve Construction Disputes
Even seemingly minor disputes may result in contract terminations. Depending on the type of dispute, your lawyer may recommend various ways to resolve the issue for a favorable outcome for both parties. Consider the following six dispute resolution techniques your lawyer may suggest:
One of the most common and convenient ways to resolve a construction disagreement is through negotiation. By communicating the issues and offering mutually beneficial solutions, the dispute may lead to a positive relationship and understanding between both parties. When you partner with a lawyer, they will assist you in ensuring a formal negotiation clause is placed in the contract to ensure both parties will attempt to reach a satisfactory resolution before escalating the issue.
Mediation is a form of non-binding dispute resolution where a neutral third party is brought to facilitate negotiations between parties. Within this process, the designated mediator will guide parties toward a mutual understanding rather than decide on the dispute. Mediation can be a relatively fast and inexpensive way to solve a disagreement early on rather than escalate to a lengthier and costlier method.
Through expert determination, the parties hire a qualified professional to resolve the issue as an objective third party. This method is usually legally non-binding and often used in highly technical disputes. Expert determination can be significantly faster and less expensive than other, more assertive options, especially if the parties want an independent assessment concerning complex technical matters.
While the process may be slower and more expensive than the above options, arbitration is a common dispute resolution technique for most construction contract disputes involving legally binding decisions. The arbitration process consists of one or three objective third parties, referred to as arbitrator(s), who have relevant experience to review and who will give the final decision on the disagreement. If both parties fail to reach an agreement, the arbitrator(s) will produce a legally binding court decision.
In some situations, a dispute may wind up in court and require legal representation to protect your company from major issues and costs properly. Litigation can be extremely stressful and frustrating while handling a project and managing your company. It’s vital for you to work with your lawyer to properly prepare for litigation and limit your potential expenses.
When developing a construction contract or navigating a construction dispute, parties must carefully assess their specific situation, analyze the dispute resolution clauses in their contracts, and consider dispute resolution options before taking any action. To prevent legal issues and significant contract disagreements, partner with a professional construction law attorney for guidance and representation.
Partner With Fahl & Donaldson for a Highly-Qualified Construction Law Attorney Today
Our Fahl & Donaldson attorneys have over 100 years of combined experience serving clients across the Texas Gulf Coast area and statewide. As a smaller firm, we offer our clients attentive, personalized legal representation. Our extensive record of success in arbitrations, litigation, and negotiations has built our reputation for devoted and knowledgeable legal representation for clients throughout the state.
When you partner with our team, you won’t have to worry about traveling to our office. We go to you and will utilize our client-tailored strategies and knowledge to assist you with planning and developing construction projects, as well as through legal situations. Speak with a team member by calling (346) 241-7355 or completing our contact form to schedule a free consultation today.