Construction disputes may be unavoidable. However, excessive prolongation of construction disputes can lead to considerable costs, delays, and the damaging of relationships between parties. Therefore, the ability to effectively negotiate and settle construction disputes is greatly important not just for the individual claim but also for the project and parties in general.

The process of successful negotiation starts well in advance of entering the negotiation room, in careful preparation. Parties should clearly identify and understand the issues at hand, and maintain detailed records of relevant documents. Parties should then establish clear goals and priorities for the negotiation, and seek common ground between the parties. When preparing a claim document to convey those arguments, care is essential. The claim document serves not only to explain your position but also to show that you are prepared. When the opponent sees your careful preparation, they may anticipate difficulty in winning against your party. Therefore, the care put into preparing a claim document can indirectly encourage your opponent to settle early, to avoid facing such a diligent adversary in court.

Another aspect of preparation is fully understanding your opponent’s position. Identify not just the weak arguments, but also the strong arguments, and ensure that you respond to each one. Additionally, when analyzing your opponent’s position, it is important to identify what is important to your opponent, which, consequently, helps brainstorm more effective alternative offers.

Similarly, it is important to understand your own position’s strengths and weaknesses, such as by getting input from a third party. Ensure that your party’s negotiator is able to negotiate based on merits rather than feelings; emotional attachment to a position may make it difficult to have solution-focused flexibility. Additionally, it is important to take into consideration not just the issue in dispute but also the consequences of a failure to settle. Taking a claim to trial can be very expensive; therefore, it can be reasonable to offer greater concessions that take into consideration the costs avoided by settling early. Carefully preparing your Best Alternative To a Negotiated Agreement (BANTA) is essential. To emphasize, a judicious approach is required to balance construction dispute resolution costs against potential impacts on the project. Timely construction dispute resolution minimizes project delays and associated costs.

Once the groundwork for negotiation is set, if necessary, parties may consider involving a neutral third party like a mediator that offers dispute resolution services. If legal complexities arise, consult with a construction law attorney. Approach the negotiation in good faith and, once an agreement is reached, ensure it is documented in writing. Parties may seek professional advice from construction claim experts providing dispute resolution services for added understanding of project constraints. Throughout the process, parties should maintain a collaborative and open-minded approach for a successful resolution while avoiding prolonged disputes in construction projects. By embracing these strategies, parties can further enhance their ability to effectively navigate construction disputes and ensure project success.