Construction jobs don’t always go according to plan. Materials show up late. Work gets delayed. Someone doesn’t get paid. When things go wrong, people often disagree on who’s responsible and what to do next. That disagreement can quickly turn into a legal dispute. If you’re caught in the middle of one, you need to understand your options and how to choose the right path forward.
Common Causes of Construction Disputes
Disputes can arise between owners, contractors, subcontractors, or suppliers. Many issues boil down to delays, extra costs, or poorly performed work. A project might fall behind because of weather, change orders, or labor shortages. Sometimes, the contract wasn’t clear about who was responsible for certain tasks. Other times, one party simply didn’t follow through.
Whatever the cause, once a dispute begins, it’s important to address it early. If ignored, the conflict can grow, and so can the legal costs.
Informal Resolution: Talking It Out
The first step in most disputes is a direct conversation. Sometimes, a phone call or meeting can solve the problem before it gets worse. This is the simplest and least expensive way to settle things. But if emotions are high or money is at stake, informal talks may not be enough.
Mediation: A Neutral Third Party
Mediation is a more structured approach. In this method, both sides meet with a trained mediator who helps them discuss the issues. The mediator doesn’t make decisions, they just guide the discussion. If both sides agree to a solution, they can sign a written agreement to make it official.
Mediation is voluntary, private, and usually much faster than going to court. It also helps keep relationships intact, which can matter in small communities or ongoing projects.
Arbitration: A Private Decision-Maker
Arbitration is more formal than mediation but still happens outside of court. In arbitration, both sides present their case to an arbitrator or panel. The arbitrator listens to the evidence and makes a decision, usually one that both sides agree in advance to follow.
Arbitration is faster than a trial, but it’s also binding. That means you can’t appeal the decision just because you don’t like the outcome. Some contracts require arbitration, so it’s important to read the fine print before you sign.
Litigation: Taking It to Court
If informal talks, mediation, or arbitration don’t work or aren’t available, the dispute may go to court. Litigation is often the longest and most expensive option, but sometimes it’s necessary. This is especially true in high-dollar disputes or when someone refuses to cooperate.
In court, both sides hire attorneys, gather evidence, and present their case to a judge (and sometimes a jury). The judge will decide the outcome, which may include financial damages or court orders to fix the issue. While it’s a public process, it can be useful when transparency or enforceability is a concern.
Choosing the Right Path
The best dispute resolution method depends on the problem, the people involved, and what’s at stake. Mediation works well for people who want to keep working together. Arbitration is often better when a quick decision is needed. Court may be the right choice when someone refuses to play fair or when the law needs to step in.
It’s also possible to use more than one method. For example, you might try mediation first and if that fails, move to arbitration or litigation.
Avoiding Disputes in the First Place
Clear contracts help prevent many disputes. A good contract will outline who’s responsible for what, when work must be done, and how problems should be handled. Before signing, both sides should understand the terms and ask questions if anything is unclear.
It also helps to document everything throughout the project. Save emails, keep notes, and take photos. That way, if a dispute comes up, you have records to back up your side of the story.
If you’re facing a construction dispute in West Tennessee, don’t wait to get legal help. At Arnold, Willis & Conway, we guide clients through resolution options and help protect their interests every step of the way. Contact us today to schedule a consultation.