Dispute resolution is the process of resolving disagreements between the parties to a construction project, whether by negotiation or through a formal procedure such as adjudication, mediation, arbitration or litigation.
Most construction disputes concern money and time: the value of variations, extensions of time, loss and expense or the final account. Contracts usually set out a tiered procedure, and in the UK a party to a construction contract within the Housing Grants, Construction and Regeneration Act 1996 has a statutory right to refer a dispute to adjudication at any time. The QS often prepares or responds to the quantum element of a dispute, so well kept records are essential.
- Negotiation and mediation: consensual and relatively cheap; the outcome is binding only if the parties agree it.
- Adjudication: fast, with a decision that is binding unless and until the dispute is finally decided by arbitration, litigation or agreement.
- Arbitration and litigation: final determinations, but slower and more expensive.
Related terms: Adjudication, Arbitration, Mediation, Expert Witness.
