The construction industry is the backbone of infrastructural development in the world. It is because progress in every country depends on the growth and success of the construction industry. However, disputes and conflicts can play a negative role in the successful delivery of construction projects.
The disputes often result in claims leading to suspension or termination of the project contracts. It is a significant loss for the contracting parties. So, it is imperative to resolve the issues systematically. For this purpose, principal methods are used to settle claims.
Are you dealing with a dispute in construction and want to get resolve for it as soon as possible? Learn about the methods and techniques to choose the best way of resolving conflicts!
Claims resolution methods used in the construction industry
There is no denying that the construction industry is one of the most complicated sectors owing to the presence of conflicts. The success of any project depends considerably on the successful resolution of the claims. Different methods are used to ensure justice between the contracting parties in case of construction claims.
Here are given a few essential methods for dispute resolution:
1). Adjudication
It is referred to as the process of resolving claims in the presence of a third party. Generally, a neutral adjudicator is hired to consider both parties’ stance and make a decision based on the facts. However, the conflicting parties have to provide proper evidence for their stance after the experts’ analysis.
So, contracting parties may acquire the services of a quantum expert and delay witness for analyzing the dispute matters and provide reports accordingly. It helps in resolving the claims under the supervision of the adjudicators.
Benefits of Adjudication
- Adjudication is conducted by a neutral individual who is not involved in the project. It helps in improving the transparency and justice for decision making.
- It is a quick process for resolving construction claims, especially related to cash flow delays and scheduling mismanagement.
- The conflicting parties can move to the court if the problem is not solved.
2). Mediation
Mediation is considered the best way to resolve claims disputes in the construction industry. It is used as an alternative dispute resolution (ADR) method for a comprehensive analysis of the situation. The mediator is responsible for making decisions based on core reasons for the claim and evidence. In all cases, proper evidence testifies to help dispute parties return to the normal working in construction projects.
Benefits of Mediation
- It enables the contracting parties in construction to normal the working.
- It is the best method for a quick solution to claims and disputes.
- The mediation process keeps the information confidential, and it is less expensive.
3). Litigation
Although many conflict resolution methods are available, court proceedings are still considered the best for dealing with construction claims. The technique is simple, the claiming party may take the issue to court, and a judge is appointed to resolve the issue. The decision is a legal binding on all the parties.
Moreover, the judges make the decision based on the stance taken during the proceedings and the provision of evidence by all the involved parties. For this, the court may hire construction claims management consultants to collect and present evidence.
Advantages of Litigation
- A judge having experience of commercial cases will hear the case.
- Mostly the method is selected for complicated construction issues.
- All contracting parties have to comply with the decision, but in case of any objection, the party may appeal to the higher court.
4). Expert Determination
The process is referred to as the construction claims resolution in the presence of construction consultants and experts. The issues resolved using this method are related to the technical aspects of construction. For instance, an experienced quantum expert is hired to resolve the claims pertaining to materials and cost increase due to delays.
Expert determination enables the contracting parties to comply with the written clauses to ensure project delivery as per the decided time plan. The professional services provide an accurate valuation of a dispute for determining the loss or damage compensation.
Benefits of Expert Determination
- It is an inexpensive way of dealing with valuation claims.
- It is considered a quick way to resolve issues between contracting parties.
- The involvement of experts makes the method valid and secure for dispute resolution.
Use the best method for claims resolution!
Summing up, construction projects are significant investments in terms of money and efforts. Therefore, It is imperative to deal with petty issues in time to avoid claims in construction. However, if you face a claim, try your best to adopt a systematic approach for resolution.
Don’t let the claims disturb your project when you can choose the claim resolution methods for a quick and acceptable resolution.