Understanding Common Contract Disputes in Construction Projects

Construction projects, regardless of size, are inherently complex, involving numerous components that must work together. With such complexity, the potential for construction contract disputes is extensive. However, certain legal issues tend to arise more frequently than others, particularly around construction quality, timelines, and payments.

The three most common types of disputes in construction projects are:

• Disputes over the quality of work
• Disputes over the time taken to complete works
• Disputes over payment or variations

In this article, we explore each of these common construction disputes and provide helpful tips on how to reduce the risk of conflict during your project.

Disputes Over Quality

Quality-related disputes are one of the most common in construction projects. They often centre on whether the work has been completed to the required standard outlined in the construction contract.

In most cases, the work should be carried out with reasonable care and skill, ensuring it aligns with the agreed contractual obligations. However, what constitutes "reasonable care and skill" can be somewhat ambiguous. Various professional standards and industry guidelines offer insight into what is expected in terms of construction quality.

If you're unsure whether the work meets the required standards, it's advisable to consult a building professional, such as a surveyor or architect, for an independent assessment.

To avoid such disputes, it's crucial that all quality expectations are clearly defined in the construction contract and supported by accurate specifications and drawings. This provides a reliable reference point for both parties.

Disputes Over Time

Time-related construction disputes are another common issue. Often, this concerns projects taking longer than originally anticipated.

While it's usually easy to determine if a project is delayed, identifying the cause can be challenging. Therefore, having a fixed completion date in the contract is key. The contract should also outline how delays are managed and under what circumstances the completion date can be extended, for instance, due to unforeseen circumstances or client variations.

If no completion date is specified, the project must be completed within a "reasonable" timeframe. However, what constitutes "reasonable" can be vague, making enforcement tricky.

Ensuring the contract is comprehensive and clear from the outset and following the prescribed procedures will help avoid delays in construction projects that could lead to potential disputes.

Disputes Over Payment

Payment disputes in construction are incredibly common and often linked to other issues like quality concerns or project delays. For example, a payment dispute may arise if work is not completed to the required standard or delivered late.

Independent payment disputes often concern variations, which are additional work outside the original scope of the contract. In these cases, the contractor may be entitled to extra payment, but disputes can sometimes occur if the process for agreeing on these extras is unclear.

To minimise such disputes, it's vital to ensure that as much of the work as possible is covered in the original construction contract. However, it's also important to anticipate that variations and extras may arise during the project lifecycle.

Therefore, the contract should include clear provisions for variations, detailing how they will be instructed, costed, and approved before the work is carried out. Once the variation procedure is in place, strict adherence to it will help avoid construction payment disputes later.

Summary

While it's no surprise that most construction contract disputes revolve around quality, time, and money, understanding these issues and proactively managing them through a well-drafted contract is key to avoiding costly litigation.

Ensuring clear specifications and expectations are embedded in the construction contract from the beginning, and consistently applied throughout the project, will provide the most effective way to prevent common construction disputes from forming.

Get in Touch

For more advice on minimising risks and resolving disputes in construction projects, please get in touch with our team of Construction Litigation Solicitors on 023 8063 9311 or email enquiries@warnergoodman.co.uk.