Construction Claims and Dispute Resolution
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 #
Adjudication
Adjudication is a statutory dispute resolution process that provides a binding,… #
It is a quick and cost-effective alternative to litigation and arbitration. The adjudicator is usually a construction industry expert who is appointed by an adjudication nominating body. The adjudication process is initiated when one party serves a written notice of adjudication to the other party. The adjudicator then has a set period to make a decision, typically 28 days. The decision can be enforced through the courts.
Arbitration #
Arbitration
Arbitration is a dispute resolution process where the parties to a construction… #
The arbitrator is usually a construction industry expert who is appointed by the parties or by an arbitration institution. The arbitration process is governed by the Arbitration Act and is similar to a court trial, but it is less formal and more flexible. The arbitrator's decision, known as the award, is final and binding on the parties and can be enforced through the courts.
Back to Back Contracts #
Back to Back Contracts
Back to back contracts are contracts that are linked together in a chain, where… #
This is common in construction projects where a main contractor enters into a contract with a subcontractor, and the subcontractor enters into a contract with a sub-subcontractor. The terms and conditions of the main contract are flowed down to the subcontract and then to the sub-subcontract.
Bond #
Bond
A bond is a financial guarantee that is used in construction projects to ensure… #
There are different types of bonds, including performance bonds, payment bonds, and bid bonds. A performance bond guarantees that the contractor will complete the project according to the contract. A payment bond guarantees that the contractor will pay its subcontractors, suppliers, and other parties. A bid bond guarantees that the contractor will enter into a contract if it is the successful bidder.
Claim #
Claim
A claim is a request for payment or compensation that is made by one party to a… #
Claims can be made for various reasons, including additional time, additional costs, or defects. Claims must be made in writing and must comply with the requirements of the construction contract and any applicable laws.
Construction Contract #
Construction Contract
A construction contract is a legally binding agreement between a contractor and… #
The construction contract sets out the terms and conditions of the project, including the scope of work, the price, the payment terms, the completion date, and any warranties or guarantees.
Construction Contracts Act #
Construction Contracts Act
The Construction Contracts Act is a statute that regulates construction contract… #
The Act sets out the requirements for payment claims, payment schedules, and adjudication. The Act applies to construction contracts for commercial and residential projects, and it aims to ensure that payments are made promptly and fairly.
Defects #
Defects
Defects are defects or omissions in the construction work that do not comply wit… #
Defects can be caused by various factors, including poor workmanship, faulty materials, or design errors. Defects can result in claims for rectification or compensation.
Delay #
Delay
Delay is a delay in the completion of a construction project that results in add… #
Delays can be caused by various factors, including weather, labor disputes, material shortages, or design changes. Delays can result in claims for extension of time or compensation.
Dispute #
Dispute
A dispute is a disagreement between the parties to a construction contract regar… #
Disputes can arise from various issues, including delays, defects, payments, or termination. Disputes can be resolved through various dispute resolution processes, including negotiation, mediation, arbitration, or litigation.
Litigation #
Litigation
Litigation is a dispute resolution process that involves court proceedings #
Litigation is a formal and adversarial process that is governed by court rules and procedures. The parties to a construction dispute present their case to a judge, who makes a decision based on the evidence presented. The decision can be appealed to a higher court.
Mediation #
Mediation
Mediation is a dispute resolution process where the parties to a construction di… #
The mediator facilitates communication and negotiation between the parties and helps them to identify their interests and explore potential solutions. Mediation is a voluntary and confidential process, and the mediator does not make a decision or impose a solution on the parties.
Notice of Claim #
Notice of Claim
A notice of claim is a written notice that is served by one party to a construct… #
The notice of claim must comply with the requirements of the construction contract and any applicable laws. Failure to serve a notice of claim can result in the loss of the right to claim.
Quantum Meruit #
Quantum Meruit
Quantum meruit is a legal principle that allows a party to claim payment for wor… #
The principle is based on the principle of unjust enrichment, where one party has benefited from the work or services of another party, and it would be unjust for the benefiting party to retain the benefit without paying for it. Quantum meruit claims are common in construction disputes where there is no written contract or where the contract is unenforceable.
Variation #
Variation
A variation is a change to the scope of work or the design of a construction pro… #
Variations can result in additional time, additional costs, or both. Variations must be agreed to in writing by the parties and must comply with the requirements of the construction contract.
This glossary provides a comprehensive overview of the key terms and concepts in… #
It covers a wide range of topics, including adjudication, arbitration, back to back contracts, bonds, claims, construction contracts, the Construction Contracts Act, defects, delay, dispute, litigation, mediation, notice of claim, quantum meruit, and variation. Each term is explained in clear and concise language, with practical examples and applications. The glossary is organized in alphabetical order for easy navigation, and it uses HTML tags sparingly to emphasize key concepts. It is a valuable resource for students, practitioners, and anyone interested in construction law and dispute resolution.