A New Approach to Construction Disputes


With private construction at its slowest pace in years, development deals stalled or stopped, more bidders chasing fewer jobs, and money flow from lenders to owners to contractors slower than normal, the last thing the construction industry needs is more claims and disputes. Unfortunately, as profit margins get smaller (various public owners report that bids are being received that are 35 percent less than the engineer's estimate) and cash flow is constricted it seems that seeds of discord have been planted leading inevitably to more disputes and claims. In this atmosphere, what can be done to avoid expensive and protracted litigation and arbitration proceedings?

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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