Construction disputes are very common in Tennessee, and they affect construction projects negatively. If you’re a construction business owner, it is important to know how to solve these disputes to ensure that your construction projects are a success.
What are construction disputes?
A construction dispute is a disagreement between the construction company and the owner of the construction project. There are many reasons why these disputes can occur, but one common reason is a lack of understanding between construction companies and construction owners.
This is where an independent person with expertise and knowledge makes the final decision on how construction problems should get solved. This is beneficial because it takes away any bias between construction owners and construction companies; instead, each side argues their case and the construction expert makes a final decision.
If construction disputes do arise, construction owners should consider negotiation as a way to solve them. This is one of the best and most common methods of resolving construction disputes; if both parties are willing to negotiate, then they will normally find an amicable solution that satisfies everyone involved.
If negotiation is not possible, construction owners should consider mediation. This means having an impartial mediator present who can help each party understand the other’s point of view and resolve their differences. Mediation can help resolve construction disputes more quickly than negotiation, though it can be expensive.
Arbitrators are independent, impartial people who help construction companies and construction owners resolve their differences by making decisions that both parties must follow. Arbitration can be very effective at resolving construction disputes, and it is often faster than litigation.
If arbitration does not work out for construction owners and construction companies, they may need to resort to legal proceedings, such as litigation. Litigation generally takes a lot of time and money; construction owners who want an outcome quickly should consider other options first.
If you own or work in construction, it’s important that you know how construction disputes might arise. As you’ve seen, using certain ways of preventing problems, such as expert determination, negotiation, and arbitration, can help to avoid these disputes effectively.