Dispute Resolution in Construction
Expert-defined terms from the Graduate Certificate in Construction Law and Dispute Resolution course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**Adjudication #
** A statutory process for resolving construction disputes in a timely and cost-effective manner, typically used for disputes arising during the construction phase. The adjudicator's decision is binding and temporarily enforceable, but can be later challenged in court or arbitration.
**Alternative Dispute Resolution (ADR) #
** A range of processes and techniques, other than litigation, used to resolve disputes. ADR includes negotiation, mediation, arbitration, adjudication, and early neutral evaluation.
**Arbitration #
** A consensual and private process in which a neutral third party, the arbitrator, hears evidence and makes a binding decision, called an award, on the dispute. Arbitration is often faster and less formal than litigation, but can be more expensive than other forms of ADR.
**Back #
to-Back Contracts:** A pair of contracts that have identical or similar terms and conditions, often used in construction projects to allocate risks and responsibilities among the parties. Back-to-back contracts can help prevent disputes and ensure consistency in the project.
**Binding Arbitration #
** A form of arbitration in which the parties agree to be bound by the arbitrator's decision, called an award. Binding arbitration is enforceable in court and can only be appealed on narrow grounds.
**Bond #
** A financial instrument that guarantees the performance of a contractual obligation, such as a payment or a completion of work. Bonds are typically used in construction projects to ensure that the contractor will complete the work or pay the subcontractors and suppliers.
**Claim #
** A demand for payment, compensation, or other remedy based on a legal right or contractual provision. In construction disputes, claims often relate to changes in the scope of work, delays, disruptions, or defective work.
**Collaborative Law #
** A form of dispute resolution in which the parties and their attorneys agree to work together in a transparent and cooperative manner to resolve the dispute without litigation. Collaborative law emphasizes communication, problem-solving, and joint decision-making.
**Commercial Construction #
** Construction projects that involve the creation or renovation of commercial buildings, such as offices, retail stores, hotels, and restaurants. Commercial construction often requires specialized knowledge, skills, and equipment.
**Construction Act #
** A statute that regulates construction contracts, payment, and dispute resolution in the construction industry. The Construction Act typically provides for adjudication, lien rights, and other remedies for non-payment or breach of contract.
**Construction Contracts #
** Legal agreements between the owner and the contractor that govern the construction project, including the scope of work, price, payment terms, warranties, and dispute resolution mechanisms. Construction contracts can be standard forms or customized to fit the project's needs.
**Construction Disputes #
** Conflicts that arise during or after the construction project, such as disputes over changes in the scope of work, delays, disruptions, defective work, payment, or contract interpretation. Construction disputes can be resolved through negotiation, mediation, arbitration, adjudication, or litigation.
**Construction Litigation #
** A formal and adversarial process in which the parties present their claims and defenses in court and a judge or jury makes a binding decision on the dispute. Construction litigation can be time-consuming, expensive, and unpredictable.
**Construction Management #
** A professional service that provides project management, planning, coordination, and control of the construction process, including the selection, scheduling, and supervision of contractors, subcontractors, and suppliers. Construction management can help ensure that the project is completed on time, within budget, and to the required quality standards.
**Construction Types #
** Different categories of construction projects, such as residential, commercial, industrial, institutional, or infrastructure. Construction types can have different requirements, risks, and challenges.
**Contractual Obligation #
** A legal duty that arises from a contract, such as a construction contract, and requires one party to perform a specific task or provide a specific product or service. Contractual obligations can be explicit or implied, and can be enforced in court.
**Delays #
** The failure to complete the construction project or a specific task within the agreed timeframe, often due to factors such as weather, labor shortages, material shortages, equipment failures, or design changes. Delays can result in additional costs, liquidated damages, or termination of the contract.
**Defective Work #
** Work that does not comply with the applicable building codes, standards, or contractual requirements, or that is not fit for its intended purpose. Defective work can result in additional costs, warranty claims, or legal action.
**Dispute Resolution #
** The process of resolving disputes between parties, such as construction disputes, through various means, such as negotiation, mediation, arbitration, adjudication, or litigation. Dispute resolution aims to find a fair, efficient, and final solution to the dispute.
**Early Neutral Evaluation #
** A form of alternative dispute resolution in which a neutral third party, often an expert in the field, provides an evaluation of the strengths and weaknesses of each party's case, based on the evidence presented. Early neutral evaluation can help the parties assess their positions, narrow the issues, and explore settlement options.
**Expert Determination #
** A form of alternative dispute resolution in which a neutral third party, often an expert in the field, makes a binding decision on a specific issue, based on the evidence presented. Expert determination is often used for technical or complex disputes, such as construction disputes involving design or construction defects.