Conflict Resolution Against Construction Contracts
Conflicts can come in any field of life, in all kind of business anytime due to any reason. Similarly, construction field is also not an exception. Mostly the construction disputes are between the main contracting party and the construction firm and some disputes can also come in the relationship between the contracted party and its sub contractors. Not all disputes need to be resolved by the court of law, though it is an option available to all the parties involved in contract and its sub-contracts. Decision from court is a time taking process and requires huge sum of money for proper attorney representation, so it is better to resolve the contractor with the parties involved. There are various ways through which conflict resolution could be done to continue working.
Most of the times conflicts arise because of misunderstandings between the parties over some terms present in the contract. So here negotiations skills come into action for acceptable resolution. Although negotiations do not guarantee a win-win situations for all, but at least all the parties can reach to an acceptable alternative through compromise. Negotiations can be done in written and verbal manners. There is no need to worry if the negotiations fails, as all the offers that are made to negotiate does not make any changes in the contract, if the matters is taken to the court later on.
Adjudication can also be used to resolve different conflicts in a construction contract. Adjudication is a right by default to all the parties involved and need not to be mentioned explicitly in the construction contract. Adjudication decisions are not mandatory to be followed though and the contract original terms remain effective if the matter is taken to the court of law. Generally, the adjudicator method is used when prompt decision is desired by the parties, especially when the construction work is in progress. Adjudicator decision has to be done within a month (depending on country's law), otherwise matter need to taken to the court for final verdict.
Arbitration is similar to adjudication in the way it works. It is used for issues resolution if the any of the parties involved are seeking to involve court of law for the resolution. Similar to adjudicator, arbitrator also needs to be an impartial person with no vested interest of himself or herself in the matter.
It is advised while finalizing the contract to identify and nominate a contract administrator. In case of dispute mostly the first step is to present the matter to the administrator to come up with an acceptable resolution for the conflict. The powers of an administrator are also stated in the contract and accepting the decision and not taking the matter to court upon administrator's decision is determined based on the relevant clauses of the construction contract.
If all the methods fail, the final method remaining for the parties is to contact relevant court of law. Litigation once made in the court leaves the verdict making to the courts, unless settlements outside court are made between the parties and case is withdrawn from the court.