Time is of the essence in any construction project. So, if a dispute arises at any point, business owners generally wish to avoid the chance of a time-consuming case going to court.
Can California construction businesses manage these disputes effectively outside of court? It is possible in some cases. Business owners should carefully consider these three steps.
1. Go back to the contract
Even if the contract is at the center of the dispute, it is important to refer to any details regarding dispute resolution included within the document. It is common for contracts to have some form of a dispute resolution clause. In such a case, both parties should follow the steps outlined in that agreement.
2. Communicate and prepare to negotiate
To resolve matters outside of court, it is critical for the parties to attempt to find a solution themselves. They are the ones who understand the project best after all. When addressing the dispute, it will be important to:
- Keep emotions out of it: Anger and frustration are common in such a situation. However, professionals must keep their emotions under control in business matters. Remaining civil and polite can go a long way to help keep matters out of court.
- Clarify your positions: Explain your expectations and your perspective clearly. Then, be sure to use active listening while the other party shares their perspective on the dispute. Misunderstandings and miscommunication can often contribute to disputes. So, clarifying and truly understanding the matters and perspectives at hand can help on the path to a resolution.
- Stay solution-oriented: Focusing on the problem will often cause the dispute to escalate. On the other hand, concentrating on finding a solution can keep the process moving forward more efficiently.
Effective communication can be key to keeping a dispute out of court. Additionally, both parties must also be willing to negotiate. It is possible to agree on changes to the project, such as adjusting the deadlines or other terms in the contract, in order to avoid litigation.
3. Seek help from a professional
The Judicial Branch of California suggests that parties attempt to solve disputes out of court as well. If the parties cannot find a resolution on their own, they may still be able to prevent litigation. For example, they can:
- Consult a neutral third party in mediation
- Consider alternative dispute resolution processes
- Obtain guidance from an experienced legal professional
These options can keep details of the dispute private. However, they can also help both parties keep moving towards a fair solution, even if they cannot reach an agreement themselves.
It is not always possible to prevent a case from ending up in court. Even so, there are steps that construction businesses can take to secure their best interests and resolve a dispute without litigation.