Dispute-Management -

Best Practices in Construction Projects -

Introduction -

What do you do when an unforeseen event threatens to increase the costs or time necessary to complete a major construction project? At first, it may seem easy to “wait and see” if the issue develops into something impactful, or reserve rights and decide the parties can sort it out after the project is complete. This response is especially common when valuable project resources and personnel will be called upon to address the issue, which can be seen as taking them away from their primary focus. However, unforeseen issues are quite normal and should be expected on any major project, as well as the disagreements that often accompany them. Investigating the causes and impacts of such incidents, as well as staking out your company’s position, should be considered an integral part of the project — for both owners and contractors alike.

Taking swift and proactive steps during this “pre-dispute” phase is always prudent. Doing so while the still-potential dispute is brewing can have a significant impact upon its ultimate resolution, as an informed and reasoned approach from the beginning will strengthen your position or even defuse the situation. This article recommends practices for a pre-dispute environment in making an initial analysis, gathering relevant information and materials, and framing the event in a favorable manner. By doing so, it aims to serve as a reminder and checklist of important initial steps which, if followed, can have a positive impact on a potential dispute and thus your project’s overall success.