What’s the best
way to deal with
a construction
dispute?
Litigation is time consuming and expensive, and
companies have looked for alternatives — including
arm wrestling — for decades. Nowhere is this more
apparent than in construction, where a need to preserve
long-standing relationships encourages parties to include
alternate dispute resolution clauses in their contracts and
experiment with different contracting models. This creativity is
commendable, but doesn’t always succeed in avoiding, diffusing or resolving disputes.
Options include party-to-party negotiation, mediation, arbitration, adjudication
or a combination.
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Construction disputes
Alternate dispute resolution
Regardless of your approach, the key to success is
Trish Morrison
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Understanding collaborative contracts: Four common contract types and challenges for consideration
Finding the
right tool for the
job: Resolving construction disputes with mediation or arbitration
Resolving disputes on
public infrastructure projects
PMorrison@blg.com
T 403.232.9472
Partner
DBambrough@blg.com
T 416.367.6008
Partner
Denise Bambrough
SGregoire@blg.com
T 514.954.3151
Partner
Simon Grégoire
TALK TO OUR TEAM
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Decisions are handed down by adjudicators, project referees or project dispute boards.
Agreements
reached through
these approaches
may not be binding.
Contractors are involved in the preconstruction phase to help develop pricing, scope and contract terms, which may include a clause
that disallows disputes.
This model is popular in more litigious jurisdictions like the U.S. but is becoming more common in Canada.
Collaborative contracting
to involve an external advisor — one with substantial experience in construction disputes — early in your project.
They’ll help you make the best business decisions regarding your project delivery model and draft a high-quality agreement with problem-solving options that are appropriate, creative and preserve relationships.
Here is a review of two options and our top recommendation for making them more successful.
