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Considering the implications of construction dispute resolutions

In previous posts, we have discussed the various ways in which disputes that arise before, during and after a construction project can be resolved. Options from mediation and arbitration to courtroom litigation all have the potential to resolve these types of arguments, but it is crucial that you take into account various factors before deciding for or against a particular method.

For instance, if you are involved in a commercial construction dispute, you have a lot to consider in terms of how you want to address the situation. You will want to discuss with your attorney matters including delays, excessive legal costs, and how these things could affect your business and the project.

In some cases, it may be in your best interests to walk away from a project. This is what happened recently when a dispute arose between a construction management company and a concrete company working together on a massive airport construction project.

According to reports, the concrete company, which was one several companies involved in the project, would not negotiate in matters involving price, design and extent of the project. This created significant friction between the concrete and management company.

The management company requested permission from the state's Aviation Board to replace the concrete company, which was granted. Unfortunately, having to do that and then negotiate contracts with other companies would have caused serious delays.

However, the concrete company ultimately made the decision to step away from the project before being replaced. Reports indicate that the concrete company was unhappy with the way the management company was unfairly requesting project profits and performance bonds.

Rather than drag the dispute out longer, the concrete company chose to walk away and allow the project to continue without them, which was seemingly of benefit to all parties.

This is one example of how parties can avoid the ugliness of a legal dispute by cutting ties and going their separate ways.

It is important to keep in mind, however, that both parties involved in a construction dispute are not always on board when it comes to terminating a professional relationship in this manner. This is why it can be crucial that you discuss your dispute resolution options with your attorney prior to making any hasty -- and potentially ill-advised -- decisions.

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