Smarter Dispute Resolution

Words: Daniel AbitboulJust because your building is set in stone doesn't mean your conflict resolution system should be as well. Most construction contracts and subcontracts contain some mechanism for claims or dispute resolution. Of course, these provisions are written by attorneys, so the conflict resolution system typically involves using attorneys ? theirs and yours ? pitted against each other. Guess who wins? The attorneys.

The way I see it, construction people tend to disagree more frequently than most. That is because there is so much risk ? known and unknown ? in every construction project. Our contracts and subcontracts are instruments for assigning risk between the parties. The risks become a "hot potato" that no one wants, so we keep tossing it to someone else.

When we disagree about who owns the risk, we invoke the contract's conflict resolution system, which usually means that, even if mediation is one of the steps, the end of the road is a lawsuit decided by a judge, jury or arbitrator who knows little about construction. By the time you reach this point, you have also accumulated attorneys' fees, lost downtime that you could have put toward a more productive project, and delayed payment ? making losers of both sides.

Don't be bound by these "set-in-stone" systems. If possible, keep your disagreements in the change order section of the contract. The change order spec is usually very robust, allowing for both direct and indirect costs to be included. Use it.

In construction, when two parties disagree about additional costs or delays, it is usually because we don't trust the other guy's interpretations of the events or contract, or we don't trust the other guy's data of facts, numbers and calculations.

The solution? Pay for what you need. When negotiation fails, before you both hire attorneys, suggest that both sides work together to find out the truth by hiring one independent attorney and/or forensic consultant to review the facts, contract and circumstances and to make an independent, non-binding recommendation on entitlement (the "what") and quantum ("how much"). Give them only a few weeks to do their analysis. Split the cost. Once both sides see the unbiased facts of the dispute, you have an unbiased, unemotional basis for reaching an informed decision ? all within the change order system!

It's a little like going to marriage counseling instead of divorce court. And it works.

Expert Tips for Brick Installation
March 2026

Clay brick has long been valued for both its durability and aesthetic appeal, but achieving a clean, consistent build that will endure for a lifetime depends just as much on jobsite discipline, install strategy, and preventative moisture management as it

OSHA’s 2025 Top Violations: What the Numbers Reveal for Masonry and Construction
March 2026

Each year, the Occupational Safety and Health Administration (OSHA) publishes its list of the most frequently cited workplace safety standards based on federal inspection data. The purpose is simple: show employers where hazards are consistently being fou

Combining Modern Healthcare with Tribal Design: Nisqually Health & Wellness Center
March 2026

The Nisqually Health & Wellness Center is a project that the wonderful team here at Warfield Masonry completed in 2020. Built on the Nisqually Reservation (near Olympia, Washington), this project incorporates a variety of masonry materials into its tribal

The Power of the STABILA Laser Technology
March 2026

In modern construction, accuracy is no longer a luxury; it is an expectation. From interior layouts to large-scale site preparation, professionals rely on tools that deliver fast, reliable, and accurate results. Among the most influential innovations of r