How can you resolve a construction dispute?

On Behalf of | Sep 20, 2019 | Construction Contracts |

New Jersey construction disputes may arise for a variety of reasons. These usually occur because the two parties have some kind of disagreement. There may be a real violation or a perceived violation of obligations in the contract. In other cases, Construction Executive explains disputes may be a matter of a misunderstanding, a delay or incomplete claims.

If you are in the middle of a dispute, it may be time to list your options in front of you. Some contracts may have the methods outlined in the contract. Others, you will not be as fortunate. The first step that most contractors and subcontractors take is to negotiate. Negotiations occur when both parties try to reach a satisfactory resolution. If negotiation does not work, then mediation is the next step. Mediation involves a third, unbiased party to help mediate the process.

Adjudication and expert determination also utilize the help of a third party. In adjudication, the adjudicator makes a decision on the parties’ behalf. This is different from a mediation, where the mediator only assists in the decision-making. In expert determination, an expert may weigh in on the dispute. Arbitration is the first of these resolutions that is legally binding. It also involves a third party who has relevant experience in the area.

Now, litigation occurs when the parties cannot resolve the issues on their own. Litigation does involve a trial. It is more complex, thorough, but in some instances is the most likely to resolve the issue for good.

The above information is for educational purposes only. It is not intended as legal advice.

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