Types of Dispute Causes in the Construction Industry

Types of Dispute Causes in the Construction Industry

The industry of construction has the highest risks for disruptions in the projects owing to critical aspects. It is significantly high in the ratio as compared to other industries. There may be many factors that can lead to the disruptions in the projects that can be internal or external.

Consider the industry of construction in the Middle East and the Gulf States; it can be said that the success of a country’s economy depends on higher revenue generated from the construction projects. Owing to this, the contractors make sure to eliminate the risks of disruption in the projects by acquiring the services of witness and quantum expert for resolving their petty issues. However, it cannot be done without considering the types of disputes that can occur in the construction.

The article highlights a few types of major disputing factors that lead to significant damages in the construction. Read the article for detail!

Types of dispute that can cause construction claims

Nevertheless, claims are the bitter realities in the industry of construction. The contracting parties should try to counter the issues on time in order to eliminate the risks in the way of a successful construction project completion. Consider the below dispute types to understand different aspects of construction claims:

Delay Claims

As its name indicates, the claims occur owing to a delay or postponement in the project by the side of the owner or the contractors. No matter, which is responsible for the delay, it causes severe damage to the projects itself. It is consequently detrimental to all the contracting parties. Consequently, the productivity or the financial loss has to be compensated by the party responsible for making a delay in the project.

Change of Order in Work Claims

Sometimes, the contractors make a change in the construction without acknowledging the owners. In such cases, the owner can make claims for compensation. On the other hand, any change request may require additional investment and time, so, the contractor may claim for compensation. It is related to the scope of work.

Price Acceleration Claims

Sometimes, the price hype can cause to increase in the price of the construction project. The overall budget is estimated initially at the start of the project. However, it may change owing to the situation of the country or economic considerations. So, it can be the potential cause of disputes among the contracting parties. But, negotiation can solve the issue.

Different Site Conditions Claims

The claim occurs owing to the difference in the construction site condition. For example, the contracting parties agreed on a site without visiting it personally, but later it turned to be the worse experience as the site is not suitable for construction. Now, the contracting party can ask for compensation. There may be other reasons for the difference in the construction site.

Damage Claims

It is the most common type of dispute that can cause claims in construction. The contracting parties can ask for compensation over the project need to mitigate the risks and their loss.

Steps for Construction Claims Prevention

It is imperative to eliminate the causes of construction claims for the successful completion of the projects. For this reason, preventive measures are essential. The contracting parties should consider different ways to make sure that no claims occur in the first place. Here are given some ways:

Make a cordial relationship with clients

Building trust among the contracting parties is one of the most important things that may help in eliminating the risks of construction disputes. People should avoid creating misunderstandings to ensure a trust relationship with their clients. It will eliminate the risks of disputes.

Pay attention to contracts

The clauses of contracts are very important that the clients should consider in detail before signing it. If the contracts are written comprehensively, they can help in preventing disputes. So, pay attention to each and every line written in the contracts for higher transparency and clarity.

Insurance is must

Last but not least, getting proper insurance for your project can help mitigate the adverse impact of construction disputes and claims. So, you should consider effective insurance plans for your projects to avoid delays and disputes.

Get professional assistance

In a case of any dispute, the first thing is to hire an experienced quantum expert for higher transforming the claims into financial value after analysis. The professional services will help you understand the issue from the core for coming up with better ways to resolve the disputes in construction.

Conclusion on construction dispute causes!

Summing up, avoiding construction disputes is the best policy when it comes to the construction industry. It is because successful claim resolution is the primary objective of every individual involved in the construction projects.  Don’t forget to be proactive to avoid delays at any cost!

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