Five Steps to Resolving Construction Disputes—Without Litigation

Abstract

Disputes are a reality in every construction project. Without a means to address them, minor issues can grow into serious disputes, with crippling consequences for project participants. The rising cost, delay and risk of litigating construction disputes has prompted the construction industry to look for more efficient ways to resolve these disputes outside of the courtroom. Within the past decade, the industry has taken steps to avoid litigation by developing various mechanisms for Alternative Dispute Resolution (ADR) that can be used during nearly any stage of a construction project. The array of ADR techniques ranges from simple negotiation to binding arbitration. The author lists five steps for resolving disputes. The first two deal with contract provisions: equitable allocation of responsibilities and risks and procedures for dealing with contract disputes. The third step involves team building (such as partnering) and establishing objectives. Step four provides for a neutral forum to resolve disputes throughout the life of a project. Techniques include Dispute Review Boards, mediation, rent‐a‐judge programs and mini‐trials. Step five, the “last resort” is binding ADR, such as arbitration.