Resolving Building Disputes

No matter how big or small a building project is, if a dispute arises it’s a serious headache for all involved. This is particularly true if the dispute brings the work to a grinding halt which can cause serious delays to the completion of the project.

Disputes can be resolved in a number of ways. The first thing the parties should do is to talk to each other. This may seem obvious but it is amazing how often the parties have not had a full and frank discussion before consulting their solicitors.

If matters cannot be resolved by talking, then a mediator can be appointed to act as a go-between to see if there is any chance of a resolution. The advantage of a mediated settlement is that the working relationship between the parties is often preserved and the building project can continue.

If there is no hope for resolution then the parties must look to one of the adversarial procedures. The default position is often one party issuing a court claim.

If the dispute is of a relatively small financial value (generally less than £50,000) or the facts are not particularly complicated then the claim will usually be dealt with in the county court. More complicated disputes will be referred to the Technology and Construction Court. This is a division of the High Court staffed by judges who are specifically skilled and experienced in building and construction disputes. The Technology and Construction court is based in London but has divisional registries in some county courts.

Other options to court proceedings

The first is arbitration which usually involves a procedure similar to that imposed by the court. However, the parties are free to choose their arbitrator and set their own rules, if they so wish. This means that parties to a building contract can have disputes resolved by someone skilled in a particular area of practice rather then a judge who may know little about technical issues involved.

The other option is adjudication, a form of dispute resolution specifically for building disputes. Adjudication aims to provide a quick and cheap method of dispute resolution so that the parties can carry on with a project with the minimum of delay. An adjudication typically takes less than 28 days and the decision is binding on the parties. However, the adjudication process is only a quick fix and can later be challenged by either of the parties if they so wish. It applies only to professional building contracts and is not suitable for domestic building projects, such as extension works or other minor projects.

Commonsense tells us that avoiding disputes must be easier and cheaper than resolving them. As most disputes arise from the various parties having a different interpretation of what is required of them, it makes sense to have a well worded contract with regular communication to ensure a successful hassle-free building project.

Published 08/05/2007. The author of this article is Jim Gorrod