Generally, most construction projects involve long-term operations with high complexity and uncertainty. It becomes very challenging to resolve or foresee every contingency at the beginning, which often gives rise to disputes between the parties involved in the contract.
Preventing a potential legal action, building contract dispute resolution plays a crucial role in resolving the conflict without any expensive and delayed court procedures. Breaching of a contract is not the only reason for conflict, but it could also be due to the termination of the agreement by one party. To eliminate the chances of a dispute, each party involved in a contract can take some steps to protect themselves before a construction project begins. Building contract dispute resolution begins with the contract itself and the addition of dispute clauses. In addition, a few of the preventive measures include reading and understanding the contract, making negotiations on potential clauses that are complex, schedules, and ordering certain products.
The major factors that lead to construction disputes include contractual problems, uncertainty, and behaviour. Different stakeholders with in the construction process may have different views, talents, and levels of knowledge of the construction process. With the complex and competitive environment of the construction industry, there are differences in perceptions among the participants of the construction project, and hence conflicts/disputes are inevitable.
A contract is the base of a construction project. Some of the reasons why contract disputes arise are delays on the contract, inability to appropriately administer the contract, and misunderstandings related to the contract conditions. Sometimes, and most commonly it is simply one party does not want to pay another party for works undertaken.
A few more inclusions to the list of significant causes of building contract disputes are the pace of building construction, delay in project completion, building design-related issues, and craft and quality.
Building contract disputes can arise for a wide variety of reasons; however, there are a few common causes that include:
Disputes on Non-payment or Delayed Payment: There are instances when a building contractor completes the work satisfactorily using proper materials and methods; however, the client who contracted for the work does not pay as committed. In such cases, a contractor can take legal action for non-payment of their dues. This process can be lengthy and expensive, this is where the Security of Payments Act can help streamline the dispute resolution process.
Disputes on Construction Quality: It must be ensured that a detailed contract is created explaining what exactly the construction work will include. However, if the client feels that the completed project doesn’t meet the pre set standard mentioned in the contract, they can raise the concern and file a lawsuit. This can in turn lead to contract termination or penalties and lead to a client not paying the contractors for works performed.
Disputes on Deadlines: In some instances, construction works can take much longer than anticipated. In the case of non-completion of the construction project in the agreed time frame on the contract, this can lead to expensive and lengthy disputes when the client feels it has a right to apply liquidated damages and other penalties. Adjudicate For You are experts in navigating through this process effectively.
At Adjudicate For You, we have skilled professionals who are expert building and construction professionals. Whether you are a subcontractor, supplier of head contractor in Australia, we help you to enforce and defend your rights under the Security of Payments Act. With the increasing number of construction disputes and other issues, we have been continuously helping our clients to deal with their building contract disputes and non-payment of invoices or payment claims. Unlike other service providers of dispute resolution, such as expensive legal firms, we thoroughly investigate your situation and analyse your position against the building contract and auspices of the Act, to explore all your legal and construction dispute resolution options. Our team of skilled professionals guide you through the adjudication process and explain the process so that you get a good understanding of the your position. We strive to make resolving your business disputes and receiving payment for works you’ve completed, smooth and hassle-free process. Adjudicate For You install the key processes with in your business to ensure these matters do not escalate again in the future.
Let us assist you in moving ahead and taking immediate steps to put an end to building disputes. Give us a call at 1300 235 834 or book a consultation to set a schedule as per your convenience.