How to Resolve Construction Contracting Disputes
Evaluate the situation., Send a letter to the other party., Wait for a response., Discuss options to resolve the dispute., Get any agreement in writing.
Step-by-Step Guide
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Step 1: Evaluate the situation.
Read through the contract you signed along with any other documents you have regarding the dispute.
Try to look at this information from an objective, dispassionate perspective to get to the bottom of what has gone wrong and what can be done to fix it.Pay close attention to the clauses describing what constitutes breach of contract, particularly any "force majeure" clause – which details instances when performance is excused because the party is unable to perform due to circumstances out of the party's control, such as natural disasters.
Weather is an issue in any construction project, so typically a climactic event must be major for the force majeure clause to apply.
Extensive rains may occasion delays, but there typically is another provision accounting for this that requires particular notice.
There also may be provisions that detail what should happen if materials aren't available by the established deadline, or if payments aren't made. -
Step 2: Send a letter to the other party.
Once you have a handle on the nature of the dispute and the source of the conflict, contact the other party in writing.
Mailing a letter provides a record of your efforts and also allows you to confirm receipt.Use standard business format and stick to the facts.
Reference the contract where necessary and describe the circumstances or events that were out of line with the original plan for the project.
Keep your tone civil and indicate you want to work to resolve the dispute.
Provide a deadline for the other party to respond after receipt of your letter.
When you've finished your letter, sign it and make a copy of the signed letter for your records.
Mail the letter using certified mail with returned receipt requested.
When you get the notice that your letter was received, keep it with your copy and mark the date of the deadline on your calendar. , When you hear back from the other party, evaluate their position and try to find some common ground that you can use as a jumping-off point to reach a compromise.
If the other party fails to respond by the deadline you provided, you may have to take other action.The other party may elect to call you, or may send you a written response.
If the other party calls you, set a meeting to discuss the issue.
Avoid getting into negotiations over the phone.
As soon as you get off the phone, type a brief letter confirming the phone call and the date of the meeting, and send it to the other party.
Sign your letter and make a signed copy for your records. , Depending on the response you received from the other party, it may be a good idea for the two of you to get together in person and look at ways to overcome the challenges you face.Try to arrange your meeting in a neutral location.
You also may want to have the meeting at the job site if there are particular aspects of the work that you want to show the other party.
Keep discussions civil, and stick to the facts.
Even if the relationship is particularly tense, you want to avoid turning it personal or resorting to name-calling.
The other party may try to make it personal, but don't respond in kind.
Be open-minded, and at least consider any option that's put on the table.
Something that seems ridiculous at first blush may turn out to be the best way to resolve the dispute once you give it a little thought.
Keep your focus on finding a resolution to the dispute so the project can continue. , If you and the other party are able to come to a compromise that effectively resolves the dispute, create a written agreement or addendum to the original contract that describes the new terms.If you're writing the agreement, give the other party a chance to read through it carefully.
If the other party writes the agreement, review it to make sure it reflects exactly the terms to which you agreed at the meeting.
You may want to have a copy of the original contract with you.
If the compromise you reached negates or alters any of the terms in the original contract, this should be addressed in the written agreement.
If you have any questions about how the compromise affects the original contract, you may want to consult with an attorney.
The written agreement should be signed by both parties.
Once it's signed, make a copy for each of you. -
Step 3: Wait for a response.
-
Step 4: Discuss options to resolve the dispute.
-
Step 5: Get any agreement in writing.
Detailed Guide
Read through the contract you signed along with any other documents you have regarding the dispute.
Try to look at this information from an objective, dispassionate perspective to get to the bottom of what has gone wrong and what can be done to fix it.Pay close attention to the clauses describing what constitutes breach of contract, particularly any "force majeure" clause – which details instances when performance is excused because the party is unable to perform due to circumstances out of the party's control, such as natural disasters.
Weather is an issue in any construction project, so typically a climactic event must be major for the force majeure clause to apply.
Extensive rains may occasion delays, but there typically is another provision accounting for this that requires particular notice.
There also may be provisions that detail what should happen if materials aren't available by the established deadline, or if payments aren't made.
Once you have a handle on the nature of the dispute and the source of the conflict, contact the other party in writing.
Mailing a letter provides a record of your efforts and also allows you to confirm receipt.Use standard business format and stick to the facts.
Reference the contract where necessary and describe the circumstances or events that were out of line with the original plan for the project.
Keep your tone civil and indicate you want to work to resolve the dispute.
Provide a deadline for the other party to respond after receipt of your letter.
When you've finished your letter, sign it and make a copy of the signed letter for your records.
Mail the letter using certified mail with returned receipt requested.
When you get the notice that your letter was received, keep it with your copy and mark the date of the deadline on your calendar. , When you hear back from the other party, evaluate their position and try to find some common ground that you can use as a jumping-off point to reach a compromise.
If the other party fails to respond by the deadline you provided, you may have to take other action.The other party may elect to call you, or may send you a written response.
If the other party calls you, set a meeting to discuss the issue.
Avoid getting into negotiations over the phone.
As soon as you get off the phone, type a brief letter confirming the phone call and the date of the meeting, and send it to the other party.
Sign your letter and make a signed copy for your records. , Depending on the response you received from the other party, it may be a good idea for the two of you to get together in person and look at ways to overcome the challenges you face.Try to arrange your meeting in a neutral location.
You also may want to have the meeting at the job site if there are particular aspects of the work that you want to show the other party.
Keep discussions civil, and stick to the facts.
Even if the relationship is particularly tense, you want to avoid turning it personal or resorting to name-calling.
The other party may try to make it personal, but don't respond in kind.
Be open-minded, and at least consider any option that's put on the table.
Something that seems ridiculous at first blush may turn out to be the best way to resolve the dispute once you give it a little thought.
Keep your focus on finding a resolution to the dispute so the project can continue. , If you and the other party are able to come to a compromise that effectively resolves the dispute, create a written agreement or addendum to the original contract that describes the new terms.If you're writing the agreement, give the other party a chance to read through it carefully.
If the other party writes the agreement, review it to make sure it reflects exactly the terms to which you agreed at the meeting.
You may want to have a copy of the original contract with you.
If the compromise you reached negates or alters any of the terms in the original contract, this should be addressed in the written agreement.
If you have any questions about how the compromise affects the original contract, you may want to consult with an attorney.
The written agreement should be signed by both parties.
Once it's signed, make a copy for each of you.
About the Author
Catherine Stevens
Dedicated to helping readers learn new skills in lifestyle and beyond.
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