Disputes out of Court
Dispute resolutions

Last Updated on May 2, 2023 by

The average cost of a construction dispute takes a really long time and is quite costly when taken to court. So, try to keep disputes out of court. It’s no wonder that industry professionals are doing everything they can to stop disputes and avoid exorbitant fees, part of this involves hiring a professional firm to help resolve these disputes. Here are a couple of tips that will help you maintain business relationships and meet project deadlines while remaining profitable.

Drafting a demand letter-

A demand letter is drafted by an attorney and is the ideal tool for getting your point across without bringing in any kind of emotions. Some contractors may go to great lengths to resolve the conflict in person or over the phone which can take up a lot of time and effort when a well-drafted demand letter can do all this as well as inform the recipient of impending legal action that was needed to resolve the issue. As soon as owners realize the legal action is imminent they come to their senses as nobody wants to go to court unless they absolutely have to. And owners will avoid anything to do with a legal dispute that can tarnish their identity. A demand letter should be your first step in resolving any dispute and if it is met with silence, then it’s time to go on to the second step.

Review your contract-

A construction contract is the most important indicator of how a dispute resolution will play out. It stipulates expectations, timelines, and payment methods along with the names of the player as well as a clause that informs what should be done in the event of a construction dispute. It is always recommended to have your contracts drafted in advance by a proper lawyer and if the dispute has already emerged, you can employ services to help you resolve it.

Explore alternative resolutions to keep Disputes out of Court-

For business continuity management, this refers to a number of services that can be used to resolve your dispute in a timely and efficient manner. Alternative disputes find a solution that works for everyone through mediation, and arbitration which helps companies maintain their privacy while avoiding expensive litigation fees. Mediation means all parties need to present evidence, convey all their issues and share their version of the events with a mediator i.e., a third party who is not involved. Mediations are not binding and in any event, they cannot be upheld in a court of law, if by chance no resolution can be found, then arbitration can be the next option to be explored. Arbitration hears each side as well as grievances and issues a decision based on the arguments presented. This process can be legally binding and depending upon previously agreed terms is more formal than mediation and results in a swift, private, and more practical solution.

Compromise whenever you can-

Remember that alternative dispute resolution can only be effective when both parties approach the goal of looking for a solution. This can be quite difficult as you would want to stay competitive and compromise can be a fine line between success and failure. However, you need to be open to hearing the other side as well as maintaining business relationships that come through for you at a later date. Safeguarding your reputation and brand needs to have an experienced ally on your side who will help you stay back or press on.

Consults a skilled and experienced attorney-

Dispute resolutions can be done by hiring a skilled, knowledgeable, and experienced company to represent you. They need to have the skill to draft comprehensive contracts, letters as well as find you a worthy solution, review your contracts, represent you in a dispute, and mediate with your team and the opponent.

The Takeaway

If you are still unable to resolve the disputes out of court after talking and sending a letter to the other party then you can seek assistance from a third-party. Consider alternative methods to resolve disputes like negotiation and mediation as they are usually less time-consuming and cheaper than going to court.

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