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Preventing and resolving construction contract disputes

Construction contracts can reduce the likelihood that a dispute will arise during the construction process. A contract that is drawn up in Texas should clearly lay out dispute clauses. Other preventative measures would include significant planning before the work begins, negotiating clauses that could be problematic and making sure that schedules are realistic.

The unfortunate truth is that construction disputes are common. They may be the result of a real or perceived violation of a construction contract. Disputes could also arise because of not having a full understanding of the contract, a failure to administer it or unsubstantiated claims made by the parties involved in the contract.

When the contract is being drafted, especially the resolution clause, a resolution method will need to be indicated. One option would be negotiation. This involves an agreement that the contractor and owner of the project would try to resolve the issue on their own before using other means. Another option would be mediation. While this option is not legally binding, it would involve a neutral third party who could help resolve the dispute.

Expert determination is comparable to mediation, but it involves the opinion of specialists. This is another option that is not legally binding. However, it can be beneficial because it could prevent expensive legal procedures. Adjudication is an option that involves a third party who makes the final decision.

Arbitration and litigation are also options that can be included in dispute resolution clauses. An individual who has questions about contract law or is interested in protecting themselves when beginning a construction project may talk to an attorney. Legal counsel could provide a variety of practical services, including helping the client draw up a contract.

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