CONSTRUCTION DISPUTES- B Flashcards
(44 cards)
is typically defined as a
disagreement or conflict between two or more
parties involved in a construction project, often
arising from perceived breaches of contract, delays,
or quality concerns.
construction dispute
Arise when one or more parties perceive that
another has failed to meet their contractual
obligations—whether in scope, performance, timing,
or payment.
Contractual DispuTES
These are among the most pervasive and complex issues
in construction projects, often leading to contractual
disputes, cost escalations, and reputational harm. These
disputes arise when project milestones are not met
within the agreed timeline, whether due to unforeseen
events, inefficient project management, or external
interferences.
Delays and Scheduling
Conflicts
____________ are among the most
common and disruptive issues in construction
projects. These disputes not only revolve around the
actual transfer of funds but also encompass
disagreements over budget overruns, cost
allocation, and the legitimacy of financial claims.
They can impact all tiers of the construction
hierarchy—from owners and main contractors to
subcontractors and suppliers.
Payment and budget disputes
These disputes are a frequent source of
construction disputes, arising when the design
documentation—prepared by architects, engineers,
or consultants—is incomplete, inaccurate, or
fundamentally flawed. These discrepancies can
significantly impact the execution phase, causing
rework, cost escalations, and delays. The
responsibilities typically fall on the design
professionals, but disputes may also involve
contractors, project managers, and owners,
especially when roles and scopes are not clearly
defined.
Design Errors and Omissions
These are a major source of post-construction
disputes and quality-related claims. These disputes
typically arise when the completed work fails to
meet the standards, specifications, or functional
performance expected under the contract. Defects
may be patent (clearly visible) or latent (hidden and
discovered after a period of use). Regardless of
visibility, such defects compromise safety,
aesthetics, or operational integrity, and frequently
trigger legal and financial consequences.
Defects in Workmanship or
Materials
Disputes arising from safety and regulatory
compliance issues stem from failures to meet
statutory obligations, industry safety standards, or
local building regulations. These issues not only risk
halting the project but can lead to substantial legal
liabilities, financial penalties, and reputational
damage
Safety and Regulatory
Compliance Issues
___________ often leads to missed deadlines,
resource shortages, or work being performed out of
order, causing disputes
Poor planning
often lead to misunderstandings about project scope,
changes, and expectations.
Miscommunication
between parties
can cause confusion about responsibilities,
deliverables, and procedures for handling changes or
delays.
Inadequate
contract
documentation
refers to continuous, often
undocumented changes or additions to the project
scope that can disrupt schedules, budgets, and work
sequences, leading to disputes over extra costs or
time extensions
Scope creep
(uncontrolled
changes)
can result in poor quality work, project
mismanagement, or unrealistic promises that lead to
disputes when expectations are not met.
Inexperienced
contractors or
consultants
can result in
unexpected work or delays, sparking disputes over
who bears responsibility.
Site condition
misunderstandings
This is the first and most direct
attempt to resolve a dispute. It
involves informal discussions
between the parties to reach an
agreement without involving third
parties.
NEGOTIATION
Involves a neutral
third party (the mediator) who
facilitates a discussion to help
the parties reach a mutually
acceptable resolution.
MEDIATION
A more formal process where a
neutral arbitrator (or a panel)
hears both sides and makes a
binding decision.
ARBITRATION
Formal court proceedings where
a judge (and sometimes a jury)
decides the case.
Provides a final, legally binding
decision enforceable by law.
LITIGATION
A quicker dispute
resolution process
typically used in regions
like the UK and Australia.
An adjudicator makes a
decision, often within a
strict time frame.
Offers a temporary binding
decision to keep projects
moving while awaiting a
final resolution.
ADJUCATION
Many standard contracts
(like FIDIC or NEC) contain
provisions for resolving
disputes internally before
escalating to external
methods.
Provides a framework for
swift issue resolution
aligned with the
contractual relationship.
QUICK RESOLUTION
UNDER CONTRACT
LAW
are designed to ensure
safety, promote fair business
practices, protect the rights
of workers and property
owners, and establish liability
in the event of disputes.
construction laws
Local laws that set standards for
the construction and occupancy of buildings.
Building Codes
: Required before starting
construction; ensures that plans comply with
local zoning and building codes.
. Permitting and Licensing
Regulate land use and development;
dictate what types of structures can be built in
certain areas.
Zoning Laws
Each locality may have
additional safety requirements specific to its
environment or construction practice
. Safety Regulations
