In construction, issues are inevitable. Tight deadlines, budgets, and contract changes often cause friction. But not every issue is a dispute. Many are simply disagreements. Knowing the difference can save you time, money, and stress.
Dispute vs. Disagreement: What’s the Difference?
- Disagreement: A difference in opinion or misunderstanding, often resolved through discussions. Think of it like a small crack—easy to fix if addressed early.
- Dispute: A more serious issue where a disagreement escalates, leading to formal actions like arbitration or legal notices.
- Crystallisation: A dispute crystallises when a claim is made and rejected or ignored, making formal resolution necessary.
How to Spot If It’s Still a Disagreement
- Communication: Ongoing discussions mean it’s likely still a disagreement.
- No Formal Action: If no legal notices or steps are taken, it’s a disagreement.
- Room for Compromise: Willingness to negotiate means it’s not yet a dispute.
Why Disputes Are Costly
Once a disagreement crystallises into a dispute, it leads to delays, legal costs, and strained relationships. Formal legal action can slow down projects and create unnecessary costs for both parties.
How to Stop Disagreements from Becoming Disputes
- Communicate Openly: Regular communication prevents misunderstandings.
- Act Early: Address issues immediately to avoid escalation.
- Negotiate in Good Faith: Stay open to compromise to resolve disagreements.
- Involve a Neutral Third Party: A mediator can help resolve disagreements and prevent formal disputes.
Real-Life Example
A developer and contractor disagree over a variation order. The developer says the extra work isn’t needed, while the contractor insists it’s beyond the original scope. Frustration grows, and a dispute seems imminent.
Instead of escalating, they sit down and review the contract. Both realise the scope was unclear and agree on a fair solution, avoiding a formal dispute. By simply communicating and reassessing the contract, they keep the project moving forward smoothly.
The Key Takeaway
Disagreements are part of construction, but they don’t have to become disputes. Address issues early, communicate openly, and be flexible to keep your project on track.
Before escalating, ask: “Is this really a dispute, or just a disagreement we can resolve?”
