You will not agree with everyone all of the time, especially in high pressure situations like construction projects. Disagreements are bound to happen but knowing when this disagreement has advanced into a dispute is necessary to maintain the timeline of projects.
Disagreements are a matter of differing opinions or viewpoints and can still cause significant frustrations or tensions. These frustrations and tensions can pose a threat to a construction project and therefore should not be ignored. However, most disagreements can be solved through negotiation.
Disputes need a more formal method of resolution. Disagreements become disputes when a claim is not admitted, a right or contract obligation/specification has been breached or the conflict escalates so far that simple discussion cannot resolve the matter.
Are you dealing with a disagreement or a dispute?
The nature of disagreements will not always be simply black and white. Therefore it can be difficult to tell when a disagreement has escalated into something more. A key turning point in construction projects, however, will be when one party rejects or ignores the claim being made by the other.
For example:
- One party is dissatisfied by the quality level of a project (either ongoing or completed).
- That party brings this to the attention of the party responsible for the quality of work.
- Should that party acknowledge to some extent the first party’s view (even if they do not wholly agree with it) negotiations can be begun to appease both sides.
- Should that party refuse to acknowledge the quality of work as specified in the contractual agreement of the project, this disagreement has now escalated into a dispute.
This is but one example of when a disagreement can become a dispute. Your particular situation may have various factors that make it hard to determine if a dispute is actually present. There will even be cases where disputes did not come from any obvious disagreements. I have seen cases where disputes have originated from something seemingly minor – such as a client adjusting priorities.
In these situations, it is always best to seek legal advice from an expert who can review your situation and determine if it is a disagreement or a dispute you are dealing with.
What to do when a disagreement has become a dispute
For construction projects, distinguishing a disagreement from a dispute is essential because it determines the path you should take to resolve the situation. Construction disputes are best suited for ADR (Alternative Dispute Resolution).
ADR methods are designed to be faster and more cost-efficient than traditional litigation methods. One reason for this is to avoid lengthening the delays already put on construction projects by these disputes. Another reason, though, is so that smaller contractors are put in a better position to challenge bigger businesses.
While most cases of construction disputes are suited for adjudication (one method of ADR), your case could also be resolved through mediation or arbitration. To learn which ADR method you need, get in touch with the team at Mercantile Barristers.
Our experienced adjudication barristers are experts in all aspects of adjudication law as it applies in construction contracts between employers, professional consultants, contractors and sub-contractors.
Whether it is a disagreement or a dispute, these situations rarely resolve themselves. So do not wait and hope. Take action now to secure your desired resolution.
