Preventing construction disputes

Most construction disputes are predictable. So why do we still let them grow?

Craig Finlayson

Regional Commercial Director

Currie & Brown


As project complexity and commercial pressure increase, preventing disputes starts with recognising the warning signs early.

Construction disputes rarely begin with a single major failure.

More often, they are the product of dozens of small decisions, assumptions and unresolved issues that accumulate over time. A procurement strategy is agreed but not followed. A design is issued before it is sufficiently developed. A contract doesn't reflect how the project will be delivered.

By the time a dispute becomes formal, it has been developing for months, and sometimes years. The warning signs are usually there. The difference is whether they are addressed while still manageable.

Disputes usually start before anyone calls them disputes.

On a live project, unresolved issues often come from momentum rather than neglect. Teams make decisions, record concerns and move on, because there is always another deadline, meeting or pressure point calling for attention.

It can be as simple as a query left for later, a concern noted but not tested or two teams taking different meanings from the same decision. None of it feels significant at the time, but it creates room for disagreement.

Once construction starts, those issues become harder to manage. Commercial pressure builds, programmes tighten and small differences in understanding can quickly become larger disagreements. The earlier teams bring those differences into the open, the easier they are to resolve.

Procurement discipline matters.

Choosing the right procurement route at the outset matters. But it only works if the project is delivered in the way that the route intended.

Problems often arise when the live project starts to drift from the original strategy. The way work is packaged changes, responsibilities become blurred and the original approach to managing risk starts to break down.

The procurement strategy cannot be set and forgotten. It needs to be checked, challenged and kept on track throughout delivery.

Design maturity needs to be understood.

Incomplete design at tender stage is not unusual. On some projects, it may even be unavoidable. The issue is whether everyone understands what is still unresolved, where flexibility has been allowed for, how any remaining uncertainty has been priced, and who is responsible for managing it.

I had a project where those assumptions were not clear, it quickly became disputed when work began. The contractor priced one level of design development, while the client (and engineer) expected another. That gap affected cost, programme and responsibility.

Before tender, teams need to know what is fixed, what still needs work, where flexibility is needed and how any remaining design uncertainty will be priced, managed and communicated.

Contracts need to reflect the project being delivered.

A contract should not sit apart from the project, only becoming relevant when something goes wrong. It should describe how the project will actually be delivered.

If the contract does not match the procurement strategy, design maturity, delivery model or decision-making process, the problems may not show immediately. But they tend to surface when time, cost or scope comes under pressure.

A good contract gives teams a shared reference point. It makes clear what is expected, how change will be managed and where responsibility sits. That clarity often prevents disagreement becoming a dispute.

Records are not just administration. They are protection.

On large projects, people move on, memories fade and decisions get reinterpreted. Without accurate records, it becomes harder to establish what happened, when it happened and why. Once the facts are unclear, positions become more defensive and resolution becomes more difficult.

Clear records give everyone somewhere to return to when questions arise. They show what was agreed, what changed and why decisions were made. That makes it easier to deal with issues early, before they become formal claims.

Early action is the best dispute strategy.

The projects that get it right are not the ones without problems. They are the ones that identify issues early, deal with them openly and maintain discipline throughout delivery. Collaboration and transparency are critical.

Teams need to be willing to raise concerns while issues are still manageable. Leaders need to create an environment where difficult conversations happen early, not when options have already narrowed.

Most importantly, everyone involved needs to recognise that addressing a problem today is usually far easier than resolving a dispute tomorrow.

Formal dispute resolution will always have its place, but effective dispute prevention needs more than a good contract. It relies on decisions made during delivery, conversations that happen when issues first emerge, and willingness to act before small problems become larger ones.

Most disputes are predictable. The question is whether we act early enough to stop them becoming inevitable.

On a live project, unresolved issues often come from momentum rather than neglect.
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