Construction contractors in New York are involved in some of the most complex business negotiations of any industry. The construction of a building involves dozens of professionals, months of planning and close attention to local zoning laws and regulations.
When there is a delay or a challenge in the construction of a building, there may be a deviation from the original contract that results in a dispute. In some cases, parties involved in a construction contract negligently or willingly break the contract. Here are three ways to prevent or resolve construction disputes:
#1: Prevent disputes with careful planning
All parties in a construction contract should be fully aware that construction projects almost never go exactly as planned. Construction litigation often arises due to misunderstandings and delays. A lot of construction disputes can be prevented with diligent pre-construction planning and a thorough contract that outlines possible problems that could arise and remedies for them.
#2: Use alternatives to litigation first
Taking a construction dispute to court is costly and time-consuming for all parties involved. It’s important to exhaust other methods of conflict resolution before resorting to litigation. Negotiation, mediation and arbitration are a few common methods of dispute resolution that may be used. A thorough contract may even include clauses that refer to the dispute resolution methods that should be used when a problem arises.
#3: Get insurance in case of litigation
Construction litigation cannot always be avoided, but the cost of a prolonged court battle may be mitigated with insurance coverage. Parties in a construction contract should consider purchasing business insurance that covers litigation costs for disputes that may arise.
