In Washington, disputes are commonplace in the construction sector, considering the complexity of any project and the large number of players involved. A well-defined and successful dispute resolution process within construction contracts may save parties substantial time and money, especially in a state with a strong construction industry like Washington. This article looks at dispute resolution techniques and how they might be strategically used in construction contracts. You can speak to an Olympia construction attorney to learn more. 

Dispute resolution clauses in construction contracts are intended to give a clear path for parties to take when problems emerge. The purpose is to effectively handle issues, preserve professional relationships, and keep the project on schedule. 

How do construction disputes spread?

Before we can discuss how to overcome construction conflicts, we must first determine what creates them. Construction issues occur from disagreements between contracting parties. The violation might be a perceived or verified breach of the contractual responsibilities by either party. Contract concerns, conduct, and contractual problems are the three most common causes of construction conflicts.

Contract problems 

Typical contracts specify the duties and risks that each party is ready to accept. Because of their inflexible structure, such agreements become unsustainable over time, forcing the contracting parties to operate on unclear conditions. When ambiguity arises in a contract, it causes a change in the parties’ risks and duties. As a result, disagreements may arise owing to the perceived shift in risk allocation in the contract.

Contracts do not cover every possible scenario; thus, difficulties may develop in areas where the contract is silent. When such disagreements emerge, parties may want to extract as much as possible from one another. Similarly, the parties may have differing interpretations of the facts underlying the transaction. One side may have unreasonable expectations, limiting the capacity to achieve agreeable accords. In addition, a party may refuse to execute its contractual obligations in order to avoid liabilities.

Negotiating as a form of dispute resolution. 

Negotiation is the most basic way of dispute settlement. It entails the opposing parties meeting to discuss the topic at hand and seeking to achieve an agreement without the necessity for third-party interference. This strategy is less expensive and takes less time to complete, and it helps the parties preserve their business connection.

Mediation. 

Mediation is a process in which an impartial third party conducts a discussion between opposing parties in order to assist them in achieving an agreement. The mediator does not make decisions for the parties but rather helps them communicate more effectively. 

The mediator may also help identify strengths and weaknesses in the parties’ positions, as well as give an objective review of the claims and defenses. This method is secret, non-binding, and provides for innovative solutions that a court may not offer. Resolutions established during mediation are typically formalized in settlement agreements, which become legally binding.