Not necessarily. What happens with a construction dispute depends on several factors, including the nature of the dispute, the terms of the contract and the relationship between the parties.
It is preferable to attempt to resolve a potential dispute at the first sign of trouble, rather than wait in the hope that the problem sorts itself out. It is important to take early advice to ensure that you know your rights before agreeing to any contract changes which may affect your future right to make or defend a claim.
Where the parties are keen to work together to settle their differences, mediation or negotiation can be very successful in resolving disputes and maintaining relationships. Disputes which can’t be resolved through discussion or mediation don’t have to end up in court – other options such as “fast-track” adjudication, arbitration and expert determination are available and may even be required by your contract before a court action can be raised. Procedure, costs and timing will vary depending on the particular facts of each case, including any contractual requirements, and advice should be sought as soon as possible to ensure the correct route is chosen. It may be possible to reach a settlement even once formal proceedings are underway and the options for settlement should be reviewed regularly to avoid prolonging proceedings for longer than necessary.
