Resolving Contract Disputes In The Construction Industry

In this article, you can discover:

• Why proactive communication is key to preventing construction contract disputes.
• How contractors in New York address dispute resolution through arbitration or courts.
• The importance of detailed contract reviews to prevent disputes from escalating.

What Common Contract Disputes Arise in the Construction Industry, And Who Do You Represent In These Areas?

In the construction industry, disputes typically stem from four main issues, all centered around the pivotal element of money. These disputes include project delays, failure to make payments, disputes over change orders that have not been compensated, and issues related to liens.

The process for resolving these disputes is generally detailed in the construction contract, including a specified claim or dispute resolution procedure. This often involves steps such as pre-arbitration mediation or, in some cases, going to court.

It’s especially important to be aware of the required notice of claim with public agencies, where deadlines can be extremely stringent—sometimes as little as 30 days. Adhering strictly to these timelines and procedures is crucial for the effective resolution of disputes.

How Can Contract Disputes Be Prevented?

The key to preventing contract disputes lies in proactive communication. For instance, some contracts require that a party must notify the owner or the general contractor within a tight timeframe—maybe seven or twenty days—of discovering an issue that could lead to a claim. Following this procedure often leads to discussions that can resolve problems before they escalate.

Importantly, always ensure that your contract includes a solid dispute resolution procedure and manageable notice requirements that you’re comfortable with. It’s crucial to scrutinize these elements during the negotiation phase and before you sign the construction contract.

Attorney Steven Coren is a seasoned lawyer based in New York who has helped countless clients just like you navigate the intricacies of construction law. With extensive experience in managing complex legal disputes and advocating for fair practice, he is prepared to assist you in achieving the outcome you need so that you can focus on what matters most to you.

Still have questions? Ready to get started? Contact Coren Law Group P.C. today to schedule your initial consultation.

Call Now To Schedule A Consultation And Protect Your Business! (212) 371-5800

How Do Construction Contractors In New York Typically Address Dispute Resolution Mechanisms?

In New York, construction contractors have a couple of primary avenues for resolving disputes: through arbitration or the court system. Contracts may include specific provisions for arbitration or mediation and typically outline the necessity of good faith in notice requirements.

These requirements dictate how to formally raise an issue, such as notifying other parties of a claim or a dispute. Adhering to these stipulated mechanisms is vital; neglecting them can lead to significant complications in resolving disputes.

How Can Disputes Be Prevented From Occurring In the First Place?

To prevent disputes from the outset, it’s crucial that all project plans and specifications are thoroughly vetted and understood by all parties involved—whether you are a general contractor, a subcontractor, or a project owner. If any party notices potential issues in the plans, these should be addressed immediately before the contract is signed.

Moreover, consider utilizing arbitration if it is an option. Arbitration can be private, quicker, and less costly than court proceedings, which makes it an attractive option for many. Knowing that disputes will be handled swiftly and efficiently can encourage more open and effective communication, significantly reducing the likelihood of conflicts arising.

For more information on Handling Bid Protests In Construction Law, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 371-5800 today.