As developers, contractors, and property owners know, construction projects are often fraught with disputes. Disagreements over contract terms, delays, defective work, and payment issues are just a few of the conflicts that can derail projects, damage relationships, and lead to costly litigation.
Most construction contracts include mediation and arbitration clauses that require parties to attempt resolution outside of court. Cobb Cole’s construction law team understands the importance of resolving disputes efficiently and cost-effectively. Our skilled mediators expertly guide involved parties through the mediation process, helping them reach amicable solutions that protect their interests and preserve working relationships.
Common Construction Disputes
Construction projects are complex undertakings, and disputes are not uncommon. Understanding the most common types of construction disputes can help all involved parties anticipate and navigate potential conflicts and keep projects on track.
- Breach of Contract. Breach of contract claims occur when one party believes one or more other parties failed to meet agreed-upon terms, such as deadlines, deliverables, and quality standards. For instance, if a contractor doesn’t complete work according to schedule or fails to meet quality requirements, another party might pursue a claim for breach. Carefully outlining each party’s obligations and documenting any changes during the project can help prevent these claims.
- Payment Disputes. Payment issues like scheduled, progress, and final payments, can create significant friction between parties. In projects where cash flow is critical, payment delays can stall projects and lead to strained relationships between contractors and owners. Ensuring payment terms are clearly outlined from the start can reduce the likelihood of these disputes.
- Delay Claims. Unexpected weather events or supply chain issues are not uncommon in Florida construction projects, often resulting in increased costs, lost time, and project disruptions. Resolving delay claims involves determining who’s responsible for the delay and whether the delay was excusable or compensable.
- Defective Work Claims over poor workmanship, material defects, or building code non-compliance can lead to costly repairs and reputational damage. Building strict adherence to building codes and quality standards into a construction contract helps reduce the risk of construction defect claims.
- Insurance Disputes. Disagreements over insurance coverage, claims, or policy terms can complicate matters, particularly when unexpected events or accidents occur. Ensuring adequate insurance is in place before the project begins helps avoid these types of claims.
- Lien Claims. Lien disputes arise when a party files a mechanics, material suppliers, or other construction-related lien over unpaid work or materials.
Recognizing these common conflicts helps parties proactively address potential problems and ensure smoother project execution. A construction law attorney provides strategic insights when drafting contracts and helps protect your project’s integrity when conflicts arise.
Mediation Clauses in Construction Contracts
Construction disputes can be project landmines, stalling schedules, straining relationships, and derailing budgets.
Mediation clauses in construction contracts are a proactive path to keeping conflicts from turning into costly battles. When disputes over deadlines, payments, or quality standards arise, mediation offers a collaborative, less combative resolution environment that’s quicker and typically far less expensive than traditional litigation.
Beyond cost and time savings, mediation protects professional relationships, a key asset in the construction industry where partnerships often extend beyond a single project. By prioritizing open dialogue and compromise, it helps parties find common ground, maintain trust, and keep projects on track.
Why Alternative Dispute Methods are Preferable to Litigation
Construction-related disputes arise on many projects, but how they’re handled can make all the difference in maintaining deadlines, budgets, and professional relationships.
Alternative dispute resolution methods like mediation are generally preferable to litigation for a few reasons.
- Unlike litigation, which is public, lengthy, and costly, mediation offers a private, streamlined way to resolve conflicts, mitigating disruptions and allowing projects to proceed with minimal interference. It can also help you avoid the high legal costs of a lengthy court battle.
- Mediation is confidential, helping businesses protect sensitive trade secrets and other information from public exposure. This can be especially valuable in competitive industries like construction, where maintaining an edge is critical.
- Mediation provides flexibility in ways formal court settings usually cannot. Parties can tailor the process to suit their schedules and needs, meeting in more informal settings that foster open communication and creative solutions.
- Mediation’s collaborative nature encourages parties to reach mutually beneficial agreements rather than enforcing a win-or-lose litigation verdict. This collaborative approach often results in more acceptable outcomes, reducing the likelihood of future conflicts and preserving business relationships.
Court-certified civil mediators bring expertise and neutrality to the mediation process, guiding both sides toward a fair and constructive outcome. Their skillful negotiations address current issues and strengthen future business interactions, making mediation an optimal choice for conflict resolution.
Unique Considerations for Construction Disputes in Central Florida
Rapid industry growth and Central Florida’s distinctive climate, including frequent hurricanes, can present unique challenges for construction projects in the state, increasing the likelihood of disputes related to delays, damages, and defects. The region’s diverse construction landscape, including commercial, residential, and infrastructure projects, can give rise to a wide range of legal issues.
Cobb Cole’s certified construction law mediators help clients navigate the complexities of construction disputes. Attorneys Scott W. Chichon and Robert E. Doan are adept at bringing valuable insights and strategic guidance to resolving even the most challenging disputes efficiently. Because they understand the unique challenges faced by Central Florida contractors, developers, and property owners, they can provide tailored solutions that protect your interests and minimize disruption to your projects. Contact us today or call 386-255-8171 to learn more about how we can assist you.