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Most Construction Disputes Are Preventable. But Not in the Way People Think.

Commercial Strategy | Greg O'Connell

There is a persistent view that disputes are inevitable on complex projects. Given the scale, the interfaces, and the commercial pressures involved, that is often accepted as part of the process.

In practice, most disputes are not driven by complexity. They are driven by how that complexity is managed.

The focus is often placed on the event itself. A delay occurs. A variation is issued. A programme shifts. But disputes rarely arise from the event in isolation. They arise from how clearly that event was identified, recorded, assessed and responded to contractually.

Where discipline is maintained

Where discipline is maintained, where notices are issued, records are kept, and change is managed within the contract, even difficult issues can be resolved without escalation.

Where it is not, relatively straightforward issues harden into positions.

By the time formal proceedings are considered, the underlying problem is usually no longer the event. It is the absence of a shared, evidenced position on what actually happened and what it means contractually. That is much harder to unwind.

Avoidance is not about eliminating issues

Avoiding dispute is therefore less about eliminating issues, and more about maintaining clarity as those issues emerge. Not just at key moments, but throughout the life of the project.

Because once that clarity is lost, positions begin to form without it. And once positions form, they tend to hold.

That requires consistency. In record keeping. In contract administration. In the management of change. And in the early identification of where commercial exposure is building, before leverage is lost.

What this means in practice

The projects that manage this well share a common characteristic: commercial process stays aligned with operational delivery throughout. Change is captured and administered formally, even when the commercial relationship makes informal management feel more practical.

It is rarely glamorous work. But it is the work that determines whether a difficult project ends in a managed resolution or an expensive dispute.

The inflection point is almost never the delay itself. It is the gradual erosion of alignment between what happened on site and what the contractual record says happened.

That is the point worth protecting.

Greg O'Connell MCIOB is Managing Director of Vinovius, a specialist consultancy providing commercial and planning expertise to the construction industry.

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