Resolving Construction Disputes ' Re-Setting Construction Contracts And Conditional Settlement

• Published date: 17 January 2024
• Law Firm: Thomson Snell & Passmore
• Author: Chris Kirby Turner

In this series of articles, I have explored some of the reasons that construction disputes occur and the process by which construction disputes can be determined by adjudication and the various methods of alternative dispute resolution.

More and more, we are seeing situations where parties that are willing to explore more inventive solutions, rather than just relying on financial claims, can break the impasse and let a project move forward, without ending up in adjudication or court proceedings.

There are a number of considerations that may be appropriate when looking to "re-set" problem projects, or reach a settlement deal which is subject to works being taken to a point of orderly handover. These options are increasingly important in the real world, particularly where there are concerns over whether a party actually has the means to pay a sum of money that reflects its legal obligations.

The Need for Real World Solutions

With insolvencies becoming more and more common as a result of supply chain disruptions arising from Brexit, Covid, global conflicts, and huge inflationary pressures, there is an ever increasing need to consider alternatives to relying on purely financial claims to enforce legal rights. Before hitting the button in enforcing contractual rights, it is always worth stepping back and considering what the practical issues are that need to be overcome in order to break the impasse and either get the project over the line, or to a point where an orderly handover can take place.

Those...