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How to navigate construction-related disputes in case you or someone you know in the industry ever faces a difficult situation like this.<br>A dispute can happen between the Owner and the Contractor, a Contractor & Subcontractor, or between a Subcontractor and a material supplier.
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Real Estate Lawyer: When to Hire a Lawyer and What to Look For How to navigate construction-related disputes in case you or someone you know in the industry ever faces a difficult situation like this. A dispute can happen between the Owner and the Contractor, a Contractor & Subcontractor, or between a Subcontractor and a material supplier. Why do disputes happen? Construction disputes happen because of disagreements between the parties on a contract because someone has a real or perceived violation of the contract and the obligations listed in them. Disputes may also occur when: There is a lack of understanding of the conditions of the contract. There are delays on a contract. Someone fails to administer the contract. The parties may make unsubstantiated or partial claims It is important to remember that disputes are not initially breach of contract, they may become one. They can also lead to a contract termination or a claim against the contractor's surety bonds.
What are some common construction disputes? Construction quality - of work or material Conflict on construction delays and the timeline Project abandonment (by either side) Non-payment How can I reduce the chance of a dispute? There are some preventative measures that can be taken to help reduce the chance of a dispute happening. Detailed planning before the start of a project can prevent delays. Always fully read and understand a contract before you sign it. If you don't understand something, you can always ask a professional. Negotiate clauses in the contract that might cause problems or are too vague to hold anything specific to. When creating a Construction Schedule, be realistic with expectations and ALWAYS plan for delays. While no one WANTS delays, Mother Nature often calls the shots. Always create daily reports and take site photos, documenting any potential issue. Deal with problems when you find them & consult a specialist if you come into an issue/ potential issue while building, ESPECIALLY if it is something structural.
What are the different methods of dispute resolution? The preferred method of resolution is usually listed in the contract under a dispute resolution section. It can be confusing knowing what that difference between the opinions are--here are a few of the common ones and what they mean: Negotiation. If the contract mentions or lists negotiation, that means the parties on the contract will sit down and try to reach an agreement before going onto other methods of dispute resolution. Third-Party Services. If the contract mentions or lists mediation, expert determination, adjudication, or arbitration, this means that the two parties of a contract will meet with a neutral third party to try to come to an agreement Litigation. If the contract mentions or lists litigation, this means going to court. Litigation is the last step when nothing else has worked. If you try to bring the case to a Judge without trying a dispute resolution method, you will often be ordered to do so. Litigation involves putting the facts in front of a jury and is usually the most costly and time-consuming. I hope you find this information useful. Should you have any questions or need for legal advice, please don't hesitate to reach out. We're here to help.
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