Construction Disputes
Construction disputes often come to mediation or arbitration as complex, multi-party cases involving claims, cross-claims, and counterclaims between property owners, general contractors, and sometimes multiple subcontractors.
They can include construction accidents, personal injury claims, claims for property damage, construction defect claims, and contractual disputes involving different understandings of whether certain obligations have been fulfilled or whether monies are owed by one party to another. Especially challenging are cases in which each side believes that they are owed money by the other, and neither believes that they should be expected to pay out toward settlement.
Mediation or arbitration, sometimes required in construction documents, often prove to be better processes for sorting through all these complexities than a lengthy and uncertain litigation process.
Owner, Contractor, Subcontractor Disputes
Whether a relatively small residential project or a large commercial undertaking, construction disputes can quickly escalate into stressful and costly conflicts that can create emotional and financial havoc for everyone concerned. Even a fairly small project can involve multiple contracts, each with its own often conflicting clauses around indemnification, payment structures, timing commitments, and other obligations.
Hidden site conditions, change orders, supply chain issues, delays, cost overruns, and material price increases can all lead to conflicts. Lack of coordination, poor communication, and unrealistic expectations can exacerbate what may start out as a minor issue.
Mediation or arbitration can help all parties reach a practical settlement more efficiently than long, drawn-out court battles.
Construction Defects
Unless managed properly, a property owner’s dissatisfaction with the quality of work performed on a construction project can create a contentious dispute resulting in protracted litigation. Issues can center around claims of deficiencies in design, quality of materials, or workmanship leading to loss of use, diminution of property value, the incurring of additional expenses, or even personal injury or property damage.
When the contractor disputes these claimed deficiencies or attributes them to changed or unreasonable expectations on the part of the owner, especially when money is withheld for work already performed, each side may feel aggrieved by the other.
Mediation and arbitration can more quickly balance these conflicting perspectives to help both sides find an acceptable resolution.
Contractual Deficiencies and Delays
Construction projects involve a lot of moving parts:
A delay by one subcontractor can throw off the timelines of others working on the project.
Lack of availability of high-quality materials due to supply chain or other issues can further disrupt the timing and integrity of the project.
Poorly communicated expectations or unanticipated complications can also contribute to conflicts around a construction project's scope and satisfactory completion.
A mediator experienced in navigating this terrain can be a great resource to parties and their counsel who may want to attempt to resolve these issues without having to undergo a costly and time-consuming litigation process. If mediation is not appropriate, a seasoned arbitrator can help construct a process that gets to a binding resolution more efficiently than the Courts likely can provide.
Mediation is often used to resolve construction disputes over payment, contract interpretation, and construction defects. The process can be less expensive and time-consuming than going to court and can be more successful in reaching a resolution that satisfies all of the parties involved. Contact us to learn more.
Our Experts Specializing in Civil Disputes
