A construction project could involve anything from a development of a residential property to the construction of a large scale building for commercial purposes.
The Joint Contracts Tribunal (“JCT”) or New Engineering Contract (“NEC”) are the most common contract forms for dealing with construction works.
Construction Dispute Resolution
From our experience, construction projects often run into difficulties where there is an absence of a clear specification/price for works or a clear paper trail for alleged extra works. “Discoveries” made on site whilst the works are being undertaken can also cause additional unplanned work. The aforementioned factors generally tend to have a knock-on effect on the completion date and add to costs.
Common claims pursued by the employer under the contract governing works generally involve claims for defective work and liquidated damages. The contractor, however, generally claims for the costs of variations, prolongation costs and loss of profit.
With all disputes, the applicable heads of claim need to be carefully considered with regards to the evidence that is available and the contract terms governing the works. With any construction dispute, it is imperative that the appropriate notices are served pursuant to the contract, as failure to do so can have dire consequences and will impact on the merits of any future litigation between parties.
Construction Adjudication, Arbitration and Mediation
There are a number of different methods that can be explored to resolve construction disputes. The most common of these are adjudication, arbitration or litigation through the Courts, though these days Tollers are also seeing a greater number of disputes being resolved either by way of negotiation or mediation. For further information on the differences between mediation, arbitration and adjudication, please click on the following link.
Talk to Tollers
Tollers have experience of guiding clients through Construction Dispute Resolution, whether through pre-action protocol, Court or arbitration process. Should you require guidance on construction disputes please contact us on 01604 258558.