734-359-7018
Now Accepting New Clients!
Blog

Why Construction Disputes Come Up and Strategies to Resolve Them

Two construction workers argue over a dispute. Relationships work well when communication is prioritized and misunderstandings can come to rapid conclusions. At some point, disputes come up needing extra effort to resolve. Construction disputes can be confusing, time-consuming, and damaging to reputations as well as relationships. Both sides can end up losing money if a dispute carries on into litigation. There are steps you as a contractor can take to avoid a dispute, but if one comes up, you have options. 

Keep reading to learn about why construction disputes begin and what resolution strategies are available for you. 

Why do Construction Disputes Begin?

Construction disputes begin when two sides disagree about one or more sections in a contract. Some disputes are misunderstandings, whereas others are violations of a contractual agreement. When obligations aren't met, there is going to be a problem. Other reasons for a dispute to come up include:

  • Delays
  • Incomplete claims made by one or more parties
  • Lack of understanding of milestones

Disputes do not breach most contracts, but they may lead to the end of a contract if not handled. Proactive steps will be necessary to keep the project on track. 

Step #1: Negotiation

Negotiation involves an internal dialogue between the two parties. In construction disputes, negotiations will typically take place between the contractor and the owner. The two parties will discuss the misunderstanding and seek to form an agreeable resolution on their own without using outside assistance. 

Step #2: Mediation

Mediation involves a neutral third party to help facilitate the conversation between the two parties. Mediation is not legally binding, but it can be helpful and cost and time-effective.

Step #3: Expert determination

The next step up the escalation ladder brings in an expert specializing in the area of dispute (i.e., electrical) to determine a value assessment or investigate a claim. At this stage, the determination is still not legally binding, but it will provide more substantial backing for or against a claim. 

Step #4: Adjudication

The next step is similar to mediation, but the adjudicator gives a decision instead of solely facilitating a discussion. An adjudication clause within a contract can stipulate an application to the courts to enforce this decision. Again, this method can be more cost and time effective than more escalated options. 

Step #5: Arbitration

An arbitrator is a neutral third party individual with experience relevant to the dispute. The arbitrator will evaluate the evidence, including documents, facts, testimony, and more, to form a decision favoring one side or the other. Depending on the local laws, arbitration can be held legally binding. This method of dispute resolution can be nearly as costly as full legal proceedings. 

Step #6: Litigation

As a last resort, litigation will resolve a dispute. Litigation includes a trial, is legally binding, and is enforceable. This resolution approach is the most thorough and complete dispute resolution strategy, but also the most complex, costly, and slow-moving form. Litigation should be your last choice after exhausting all previous options. 

Protecting Your Interests with an Experienced Construction Litigator

No one wants deals to breakdown and working relationships to be challenged; these are unfortunately a part of the construction and property ownership business. If you have a construction dispute, make sure to have an attorney experienced in litigation who understands the complexities of real estate and construction law like those at Aldrich Legal Services. We can help you walk you through the dispute resolution process, whether that includes liens, using a third parties assistance, or litigating your case.

FAMILY LAW 83: A trial court can terminate a parent’s rights and permit a stepparent to adopt a child.

A trial court has discretion to terminate a parent’s rights and permit a stepparent to adopt a child when the conditions of MCL 710.51(6) are met. MCL 710.51(6)(b) requires the petitioner to establish that the other parent had the ability to visit, contact, or communicate with the children, and substantially failed or neglected to do so for a period of two years.

PROBATE 53: The trust agreement included an Incontestability Provision.

A settlor’s intent is to be carried out as nearly as possible. Generally, in terrorem clauses are valid and enforceable. However, a provision in a trust that purports to penalize an interested person for contesting the trust or instituting another proceeding relating to the trust shall not be given effect if probable cause exists for instituting a proceeding contesting the trust or another proceeding relating to the trust.

FAMILY LAW 82: Court stated it would terminate the personal protection order (PPO) after the parties present documentation of the initiation of the divorce proceedings.

However, the trial court concluded that these matters should, in fact, be in the province and the jurisdiction of the Family Division and in that respect, having issued a personal protection order, the Court stated it would terminate the personal protection order after the parties present documentation of the initiation of the divorce proceedings.

What to Do When Homeowners Insurance Denies Your Claim

Since 1955, homeowners insurance has helped owners protect their property and belongings against damages and theft. According to the Insurance Information Institute, over 93% of homeowners in the US have homeowners insurance coverage, paying around...

What to Look for in a Criminal Defense Attorney

Originally posted on 10/20/2017 If you are charged with a crime, you could face severe penalties that could include financial fines, public service, or even jail time. For those in the Michigan area, hiring an attorney experienced in...

PROBATE 51: Trust filed a petition to determine title to credit union account.

The probate court explained that the owners of the account are S and J. When S passes, J becomes the owner of the account. J is the one who had the authority to make the designation. Nowhere in any documents is there a designation by J that SJ be the owner -- or the beneficiary of the account. The designation made by his father was no longer binding because he was no longer the owner at the time J passed away.

Invoking Your Right to Remain Silent

Originally posted on 07/19/2017 While the “right to remain silent” represents one of your most inalienable rights, many people have a few misconceptions about how it works. Many people receive their understanding of this...

Arrests made by tracking cell phones may be illegal

Originally posted on 02/10/2017 Law enforcement agencies are always looking for an edge in fighting crime. As cell phones have become an indispensable part of life for many people, authorities have taken to using these devices to track...

Could I lose my job over a drunk driving arrest?

Originally posted on 01/20/2017 When potential clients ask us questions about criminal defense representation (particularly for drunk driving offenses) one of the most common is whether they will lose their job.  Naturally, this...

FAMILY LAW 77: Court awarded plaintiff sole legal custody; defendant was unwilling to work with plaintiff.

For joint custody to work, parents must be able to agree with each other on basic issues in child rearing including health care, religion, education, day to day decision making and discipline and they must be willing to cooperate with each other in joint decision making. If two equally capable parents are unable to cooperate and to agree generally concerning important decisions affecting the welfare of their children, the court has no alternative but to determine which parent shall have sole custody of the children.

Don't let a bad decision, unfair contract, or a messy divorce get in the way of a promising future!
Contact the experienced team at Aldrich Legal Services today to schedule your free initial
consultation
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000
734-237-6482
734-366-4405