When embarking on construction projects, clients hope they will never encounter a dispute or a claim situation. However, construction projects are complex, long-term transactions with high levels of uncertainty. Therefore, it is impossible to resolve every detail and foresee every eventuality at the outset.

As a result, situations can arise that lead to conflict, be it through poor communication, project changes, overruns, defects or simply the contractors’ costing and management of cash flow.

Conflict can lead to the deterioration of relationships, breakdown in trust, delays, additional costs and ultimately, breaches of contract and claims for damages.

It is best to address these issues early on before the dispute arises, rather than simply responding to it when the impact on the project can have a greater impact on time and cost.

The Royal Institution of Chartered Surveyors (RICS), the world’s leading professional body for qualifications and standards in land, property, infrastructure, and construction, addresses these issues through a series of good practice guidance notes, which can be summarised as follows:

Communications – Establish clear lines of verbal and written communication between all parties involved to avoid any potential misunderstandings.

Regular Reporting and Proactivity – Identify the key stakeholders and their individual needs. Keep them updated with regular reports on objectives, risks, cost, progress, and quality.

Record Keeping – Conflict can often be avoided by keeping proper and detailed records of agreements, instructions,
variations, labour, plant, materials, etc.

Contract Documentation – Ensure clear contract documents are selected and drafted. Conflicts can arise from ambiguities in contract documents.

Payment Practice – Establish and adhere to proper payment practices and closely monitor and control contractors’ cash flow.

Project Management – Potential problems can be analysed and managed by proactively planning future work and raising issues of concern early. Closer cooperation between project stakeholders can improve teamwork.

Client Management – A proper and complete understanding of the client’s brief and objectives can help avoid conflict, as can regular communications to manage their expectations.

Design Team Management – Ensure the timely provision of comprehensive and coordinated design information within the design team and clear instructions and directives issued to the contractor.

Contractor Management – Regularly assess project progress, costs, risks and other key performance indicators and liaise with the main contractor to deal with any problems early on.

Third-Party Management – Identify and assess third-party dependencies and implement strategies to mitigate, transfer, avoid or accept risks.

Implementing these ‘good practice’ procedures will significantly reduce the risk of conflict in all construction projects.