Avoiding Disputes in New Construction
By H & K Ryan & Associates|November 10, 2016
Constructions disputes are a regular occurrence and can be avoided by both parties adhere to a contract.
A client expects the builder to deliver on time the completed project on budget. There is also the expectation that the dwelling will not have defects and be finished exactly as stated on the plan. When things are not clearly stated in writing, and agreed by both parties, this is when disputes can happen. The contract should clearly state what both parties agree on.
When things go wrong then there are a few steps to take to try and avoid litigation.
Negotiate
The first preferred way is to resolve a dispute by negotiation where both parties met and try to come to a mutual agreement satisfactory to all.
Communication
Clear communication is the answer in resolving disputes and confirming that both parties agree with what is being communicated. If a dispute is being discussed always seek acknowledgement that both parties understand what is being said.
Avoid Arguing
Building disputes can easily turn into heated arguments, however the key is to stay calm, and talk things out in a civilized way. Arguments can turn into regrets so staying calm is important.
Put it in Writing
Make clear documented notes with dates of all discussions and agreements as a point of reference.
Have The Right Facts
Check that your facts are right before blaming. Refer back to contracts and notes to determine whether you are in the right, if it is in writing you have more chance of winning.
Mediation
If the dispute can’t be resolved then the best approach is to hire a mediator to try and resolve the problem. A skilled mediator facilitates a solution, which suits the needs of both parties. The mediator will not take sides. A good mediator will also help the disputing parties arrive at a solution rather than having a court make the ruling. Mediation will also be helpful in keeping the relationship intact.
Arbitration
If all else fails then the next step is arbitration. The decision can be enforced legally and is not easily appealed.
Litigation
The last and final step is litigation, which is a very costly exercise. Litigation is a formal process for resolving disputes in court or tribunals, based on the rights of the parties involved.
A client expects the builder to deliver on time the completed project on budget. There is also the expectation that the dwelling will not have defects and be finished exactly as stated on the plan. When things are not clearly stated in writing, and agreed by both parties, this is when disputes can happen. The contract should clearly state what both parties agree on.
When things go wrong then there are a few steps to take to try and avoid litigation.
Negotiate
The first preferred way is to resolve a dispute by negotiation where both parties met and try to come to a mutual agreement satisfactory to all.
Communication
Clear communication is the answer in resolving disputes and confirming that both parties agree with what is being communicated. If a dispute is being discussed always seek acknowledgement that both parties understand what is being said.
Avoid Arguing
Building disputes can easily turn into heated arguments, however the key is to stay calm, and talk things out in a civilized way. Arguments can turn into regrets so staying calm is important.
Put it in Writing
Make clear documented notes with dates of all discussions and agreements as a point of reference.
Have The Right Facts
Check that your facts are right before blaming. Refer back to contracts and notes to determine whether you are in the right, if it is in writing you have more chance of winning.
Mediation
If the dispute can’t be resolved then the best approach is to hire a mediator to try and resolve the problem. A skilled mediator facilitates a solution, which suits the needs of both parties. The mediator will not take sides. A good mediator will also help the disputing parties arrive at a solution rather than having a court make the ruling. Mediation will also be helpful in keeping the relationship intact.
Arbitration
If all else fails then the next step is arbitration. The decision can be enforced legally and is not easily appealed.
Litigation
The last and final step is litigation, which is a very costly exercise. Litigation is a formal process for resolving disputes in court or tribunals, based on the rights of the parties involved.
