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What Construction Disputes may your business encounter?

Commercial enterprises regularly have to call upon the assistance of builders, architects and other tradesmen to improve, expand and maintain a business premises. Those who do so expect a reasonable service, and in return the construction company expects to be paid the agreed sum in full.

However, this relationship does not always run smoothly, as one party might state the other has not kept to the terms laid out in the contract. Common types of construction dispute a business may encounter include:-

  • Extension of a deadline
  • Faulty work
  • Professional negligence (e.g. negligent design)
  • Unpaid fees
  • Expenses due to delay/disruption

A construction dispute can be extremely troubling for business owners. Depending upon the nature of the problem, it may hinder (or even prevent) the business from operating, make the premises unfit for use, or cause disruption for both employees and customers. This can prove very costly, affecting trade, profit margins and cash flow. If the work is faulty it may be necessary to pay for additional fees or materials. Consequently the price of construction may come in over-budget, ultimately making it a poor investment.

It is therefore important to resolve the dispute as quickly as possible, or the disagreement could lead to terrible financial cost. Often a contract will state how a dispute should be handled – usually through adjudication or arbitration. Even if a contract does not make such stipulations, it is still possible to explore the various methods of alternative dispute resolution. This will be especially useful if negotiations do not work but a business wishes to avoid litigation through the courts.

If you are involved in a construction dispute, come and speak to us. This will enable you to clarify your legal position, helping you understand what action you should take next. Just call 01772 424999, email enquiries@solicitordirect.com or alternatively fill in the form below. All initial advice is free of charge.

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