The Art of Negotiation in Construction Contract Disputes

Abstract

Negotiating is one dispute resolution technique that is used to try to settle construction contract disputes when they arise during construction. No matter how thorough and well-written construction contracts are, contract disputes still occur during construction projects. Being able to draft construction contracts that address every potential problem that could surface during construction is not feasible; therefore, during the execution of many construction contracts, one or both parties file claims against the other party. When owners, engineers, or contractors are involved in settling contractual disputes, it is beneficial for them to be familiar with contract dispute resolution techniques. There are several different types of dispute resolution techniques that are used in the construction industry; this article discusses negotiation, which is one of the traditional dispute resolution methods. This article reviews traditional dispute resolution techniques, provides definitions for negotiation and construction contract claims, and discusses the negotiation of contract claims and negotiators.