Construction contract dispute lawyers

At Moore Barlow, our specialist construction dispute lawyers are experts in resolving conflicts that arise within the construction industry.

Whether you’re a contractor, property owner, developer, or subcontractor, our team understands the complexities of construction contracts and the disputes that can stem from delays, defects, or payment issues. We provide tailored legal solutions to ensure that your dispute is resolved efficiently and with minimal disruption to your project.

With years of experience in construction law, our construction dispute lawyers have a proven track record of successfully representing clients in a wide range of disputes. From adjudication and arbitration to mediation and litigation, we will guide you through the most suitable resolution process, safeguarding your interests and helping you achieve the best possible outcome.

What is construction dispute resolution?

Construction dispute resolution refers to the methods used to manage and resolve disagreements that emerge between parties involved in a construction project. These parties could include property owners, contractors, subcontractors, suppliers, and other stakeholders in a construction contract.

Common causes of construction disputes

There are several reasons why disputes commonly arise within the construction industry. These include:

• Construction defects, quality concerns, changes in scope, and cost increases: Many disputes stem from issues like poor workmanship, substandard materials, or deviations from the agreed project specifications. Cost overruns due to unexpected price increases for materials or labour, and failure to inform key stakeholders about these rises, are also frequent causes of conflict.
• Delays and disruptions: Construction projects are often subject to delays for various reasons, such as unexpected project changes or poor planning. Most construction contracts have provisions for liquidated damages to cover the financial impact of such delays, making it crucial for all parties to understand these clauses.
• Payment disputes: Non-payment for services or materials is a widespread issue. Disputes commonly arise from unpaid invoices, contested payment applications, or claims for additional costs that exceed the agreed contract terms.

How to avoid construction disputes

While disputes in construction projects can’t always be avoided, certain measures can help reduce the likelihood of them arising:

Clear contract drafting

A well-drafted, comprehensive contract is key to avoiding disputes. It is crucial to understand the terms of the contract and ensure it includes clear mechanisms for resolving any disagreements. Standard form contracts are often used, but it’s important to tailor these to suit the specific needs of the project and the parties involved.

Effective project planning and documentation

Having a dedicated project manager or team responsible for overseeing the contract’s administration can make a significant difference in avoiding disputes. This not only helps ensure smooth project execution but also allows for better documentation of progress, which can be invaluable if issues arise.

Due diligence checks

Conducting thorough due diligence before entering into any contract is essential. This can uncover potential issues, such as financial instability of the other party or concerns about their reliability, that could lead to problems down the line.

Methods of resolving construction disputes

There are several options available when a dispute arises, and the method chosen will often depend on the complexity and nature of the issue. Common methods of dispute resolution include:

Adjudication

As outlined in the Construction Act 1996, adjudication is a fast and efficient method for resolving disputes in the construction industry. An adjudicator usually makes a decision within 28 days, providing a solution that allows work to continue without major disruption. While adjudication is a cost-effective process, it may not be suitable for complex cases, and the costs incurred during the process are not always recoverable.

Arbitration

Arbitration involves a neutral third party (an arbitrator) making a binding decision on the dispute. This method offers confidentiality and allows for the recovery of legal costs, but it can be expensive and there is limited scope to challenge the outcome. Arbitration is often preferable for more complex disputes or those involving multiple parties.

Mediation

Mediation is a collaborative approach where an independent mediator facilitates negotiations between the parties, aiming to reach a mutually acceptable settlement. This method is cost-effective and quicker than litigation, but it requires both parties to be willing to compromise. If successful, the outcome is usually formalised in a binding settlement agreement.

Litigation and the Pre-Action Protocol

Before resorting to court proceedings, parties must comply with the Pre-Action Protocol for Construction and Engineering Disputes, which encourages early exchange of information to facilitate settlement. If the dispute proceeds to court, a judge will manage the case through to trial, where a final judgement will be issued. Litigation is often the most expensive and time-consuming option, so it is typically considered a last resort.