Construction Disputes

Over the last century, the construction industry has earned a reputation as a competitive and adversarial marketplace where disparate parties battle one another in zero-sum game scenarios. As a result of this distributive tendency, mistrust, hostility, and other non-cooperative behaviors frequently result in conflicts between project parties. The prevalence of these conflicts and their root causes are well documented in the literature. If not properly addressed, these conflicts can escalate into construction disputes or, worse, litigation. Evidence of the inefficiencies and waste caused by construction disputes is slowly influencing industry practitioners’ choices and contracting practices to reduce the impact on the company’s bottom line. This chapter will explore the nature of disputes in the construction industry and present a framework for minimizing their impacts through various prevention and resolution strategies. From efforts to create collaborative project environments to contractual language that aims to resolve conflict in a timely manner, the systems presented in this chapter are tools that aim to minimize the impacts of construction disputes.