Mediation in Construction Disputes: What Project Managers Need to Know

Construction disputes are a fairly common occurrence in the world of construction, and how crews handle them will make a big difference in which ones are still here in five years. According to Lyle Charles, a consultant with more than 40 years of experience in the construction industry, poorly managed claims are one of the single biggest revenue eaters for most crews. Here, we’ll discuss why that holds true and what to do about it.

Why Revenue Disappears During Claims

Construction delay claims don’t just cost you the amount of the claim itself. They can lead to work stoppages and lost time while both parties squabble over who is owed what. Sometimes, these aren’t even in your hands. What if your supplier can’t send the granite or steel you ordered on time?

That lost time translates into additional lost revenue, so there is a very real sense of urgency. That’s where a firm like Lyle Charles Consulting can help. It costs money to hire an advisor, but the cost is easily made up by the time you save organizing the information you need to resolve the claim. Sometimes, this work can even occur on your behalf. This is a godsend for smaller crews, who often don’t take the time to appropriately file paperwork in the event of a big job.

Legal Challenges

Aside from expediting the claim, your next best option to save money in a dispute involves construction mediation services. A trained mediator, typically licensed by the state, will hear both sides of the argument and help each of you arrive at a mutually beneficial decision. Never assume that a judge is your final option. It’s typically only the costliest option, not your only opportunity.