The construction industry is arguably the most significant agent of progress in the modern world. But this also means it is a highly complex sector where collaborative efforts and uniformity of goals among stakeholders are required right from pre-construction.
However, this is not always the case; contentions often arise that jeopardize the project. Every construction project should have a definitive conflict prevention and resolution plan to prevent escalation into significant issues such as budget overshoots, project delays, and litigation.
This aims to inform stakeholders in construction projects on how to address common pre-construction conflicts effectively.
Identifying Common Pre-Construction Conflicts
Pre-construction conflicts stem from various sources. Below are the most common pre-construction conflicts and their causes:
Scope Creep
In this situation, the project’s scope expands beyond the initial objectives without adjustments to time, cost, and resources. The changes are often incremental, making them easy to overlook until they become significant and disrupt project progress.
The leading causes are unclear objectives and the owner creating new requirements. Incomplete or inaccurate project documentation and changes in market conditions can also trigger scope creep.
Budget Overruns
When the actual project cost exceeds the estimated budget, owners and contractors are bound to disagree. This can result from poor cost estimation or changes in project scope. External factors such as price fluctuations can also drive up project costs.
The project scope must be precisely defined, and any changes must be communicated and agreed upon by all parties. Additionally, there should be an allowance for unforeseen increases in costs.
Design Discrepancies
Design discrepancies arise when there is a divergence between the architectural or engineering plans and the owner’s requirements. They mostly originate from misinterpretations of the design brief.
Errors or omissions in the design documents and inaccurate or incomplete site analysis are other major causes. A lack of coordination among the design professionals can also be a cause.
Permitting and Regulatory Challenges
Obtaining permits and complying with regulatory standards are often a contentious phase in the pre-construction process. Disputes often arise when there’s a change in construction and environmental regulations or zoning laws.
Delays in obtaining construction permits, often caused by bureaucratic red tape or other unforeseen administrative hurdles, can lead to conflicts.
Incomplete or incorrect documentation for compliance and other unexpected legal hurdles are other grounds for disputes. Stakeholders should work with experienced construction legal attorneys to prevent or solve these conflicts.
Communication Breakdown
Effective communication is pivotal for executing any project, especially construction projects. When communication breaks down, valuable information gets lost, leading to conflicts.
Communication breakdowns can take various forms, including poor communication channels and insufficient information. Having state-of-the-art communication channels and providing regular project updates are two effective ways to address these conflicts.
Using project management software can also help prevent such disputes as it allows for real-time communication.
Addressing Pre-Construction Conflicts
The complexity of construction projects makes pre-construction conflicts not uncommon, even with the best planning. In the event of a conflict, stakeholders can employ various strategies to reach an amicable resolution. These include:
Establishing a Clear Project Plan
This is more of a proactive rather than a reactive approach. Project plans should have a detailed and accurate scope of work as well as a realistic timeline and budget.
The plan should meet the owner’s requirements while allowing contractors to deliver within the confines of their expertise. Changes to the plan must be documented in a clear, accurate, and timely manner to allow for discussions.
Effective Communication Strategies
When all stakeholders are on the same wavelength, conflicts become rare, and their resolution becomes streamlined. As such, a culture of open communication should be adopted.
This can include regular project updates, meetings, and technological tools to enhance communication.
Change Management
In extreme cases, such as when the original project scope becomes unfeasible, altering some aspects of the project may become necessary. This process is normally referred to as a change order.
The changes can be in the processes, tools, or execution techniques. When such changes are done, they must be communicated to all stakeholders and documented for future reference.
Conflict Resolution Mechanisms
Mediation and arbitration are the most common conflict resolution mechanisms in the construction industry. In mediation, a neutral third party serves as the mediator to help the conflicting parties come to a mutually acceptable resolution.
Arbitration is more formal than mediation, where the third party listens to submissions from all parties and makes a binding decision.
Litigation is also common and may also be preferred when the stakes are high. In all three methods, the guidance of a construction litigation attorney can prove invaluable.
Resolving Pre-Construction Conflicts With the Help of Experienced Legal Counsel
Don’t let pre-construction conflicts derail your project. If you involve a construction attorney from the onset, the chances of pre-construction conflicts will be minimal, allowing time and resources for the actual construction work. This will translate to timely project completion and a better bottom line.
The attorneys with KPPB LAW have 10 decades of collective experience that can help address any pre-construction conflicts. Their expertise, commitment to excellence, and sound legal advice make them a reliable partner for any construction project.
Contact KPPB LAW today to learn more about their construction legal services.