The Cost of Conflict
Disputes in construction aren’t just expensive – they’re destructive. They consume management time, strain relationships, and stall cash flow. Yet most disputes don’t come out of nowhere. They grow silently from poor systems and missed opportunities to resolve issues early.
Where does it go wrong?
- Vague contract clauses open to interpretation.
- Records incomplete or inconsistent.
- Variations agreed verbally but never written down.
- Early warning signs ignored until positions harden.
The Root Cause
Disputes thrive where there is ambiguity. When projects lack clarity, structure, and consistent communication, every delay or cost becomes a battle. What should have been a conversation turns into a claim – and then a dispute.
One real-world example:
On a £40m civils project, unclear scope definitions triggered 27 separate disputes. The eventual settlement cost £3.5m – and 18 months of legal wrangling. Almost all of it could have been avoided with tighter drafting and earlier notice procedures.
Prevention Beats Cure
The best commercial teams:
- Draft contracts with clear risk allocation.
- Maintain auditable, real-time records.
- Document every variation formally, no matter how small.
- Escalate early to resolve issues before they snowball.
Final Thought
Disputes aren’t inevitable. They’re a symptom of weak commercial discipline. The right systems turn conflict into collaboration – saving time, relationships, and margin.
