Issues are not unusual in construction and property development, and they need to be resolved quickly, cost effectively, and fairly.
Parties involved in a dispute should attempt to resolve it themselves (known as self-resolution). Issues can often be resolved by talking the problem through and reaching an agreement or compromise.
Some of the benefits of self-resolution are:
- It can be the quickest and cheapest means of resolving a dispute.
- It can prevent the dispute escalating.
- It can preserve the relationship between the parties.
- It can prevent future disputes from occurring – or enable them to be resolved more quickly.
There are three simple steps to self-resolution of a dispute:
- Check your facts.
- Record any agreement in writing.
Check your facts
Review the written contract and what has been discussed to date. Be sure that you understand what your contract means for you.
When it comes to discussing a problem with each other, these tips may help:
- Talk with the other party as soon as possible if you have a concern – ignoring a problem is not going to make it go away.
- Be available to each other and do not ignore attempts from the other party to contact you.
- Express your views clearly and listen with an open mind to what the other party has to say.
- Try to understand the other party’s point of view.
- Check that you and the other party both understand what the concern is.
- Come up with a range of options to resolve the matter including possible compromises.
- Set realistic goals for reaching an agreement.
- Keep talking and listening regardless of whether a mutual solution can be reached.
- Set another time to continue negotiations if the issues are not resolved straight away.
- Stick to the issues and be respectful, especially when leaving voicemail, text messages, or sending emails. This will avoid creating unnecessary ill-feeling towards one another due to a hasty, poorly-worded message.
Record any agreement in writing.
While most verbal or ‘hand-shake’ agreements are binding, it is important to ensure that key issues are accurately recorded in writing. Some advantages of doing this are:
- it provides a means of checking that the parties have agreed on the key issues.
- it provides a means of ensuring that details of what has been agreed to can be recalled at a later time.
- it prevent future disputes by clearly outlining what has been agreed to.
- it provides a means of confirming closure in regards to a dispute.
- it makes enforcement easier if the agreement is not adhered to.
Get more information
The Building Performance website has a lot of information through the following links that you may find useful:
Taking it further
If you are not able to resolve your dispute, or if you want to take the matter further, you have a number of options. Here are some useful places to go: