Common Construction Disputes and Effective Resolution Methods

• April 30, 2025
• Business Litigation

Working with a construction company to build a home or business location — or renovate an existing one — has its advantages. However, new construction isn’t without downsides, and one of those is the possibility of disputes and disagreements. When you understand some common types of disputes and what you can do to resolve them, you’ll be more likely to preserve your relationship with your contractor, avoid legal disputes, and end up with the new construction of your dreams. Here’s how to resolve construction disputes.

Many types of construction disputes can be resolved with clear, respectful communication. If communication alone won’t work, most attorneys suggest mediation — and possibly arbitration if mediation proves to be fruitless. Litigation is usually a last resort.

Common Types of Construction Disputes

These are some of the disputes you may run into when dealing with a construction company.

Breach of Contract

In the construction industry, contract disputes are common. In some cases, the construction company may clearly break the contract. One example is abandoning the project without offering you a valid explanation or a refund.

Disputes Over Quality of Work

What happens if the contractor completes the required work but leaves you with subpar results? Some contractors will agree to redo the work, but others may insist that your concerns are baseless. When the latter happens, you may need the help of a lawyer.

Extreme Delays

Many construction projects run into mild delays due to weather and other issues. However, if there are supply chain issues or repeated scheduling conflicts that make the project drag on for months longer than agreed, you may be unsure of how to resolve the problem.

Payment Disputes

Disputes over payment are unfortunately common in the construction industry. Maybe the contractor initially said you would owe half of the fee up front and half when the work is complete — but they’re now insisting you must pay it all now. Or perhaps the contractor is charging significantly more than the estimate they gave you.

Payment disputes can turn very bitter very quickly, so it’s often wise to talk to a lawyer sooner rather than later.

Possible Resolution Strategies

Litigation Isn’t Your Only Option

Many people think that consulting an attorney about a construction dispute means they’re headed toward litigation. However, in almost every case, it’s best to try other options first. Here’s a look at some of the negotiation strategies that might help you resolve your dispute.

Negotiation

Some construction disputes arise out of simple misunderstandings. In these cases,  you may be able to come to a resolution by discussing the issue with the construction company and negotiating a solution. You may want to try talking to the contractor yourself first. If you prefer, you can consult an attorney for negotiation advice without bringing your lawyer into your interaction with the contractor.

If you need some assistance with negotiation but don’t want to move to more formal methods of alternative dispute resolution like negotiation and mediation just yet, your attorney may be able to help you and the contractor work out a solution. Sometimes, this can be as simple as sitting down with the construction company and your lawyer (and possibly the contractor’s lawyer as well) and having an informal discussion.

Need help resolving a construction dispute? Call Lusk Law, LLC at (443) 535-9715 to set up a consultation.

Mediation

If negotiation doesn’t work — or if the relationship between you and the construction company has deteriorated enough that simple negotiation won’t solve things — mediation is often the next step. This is how the process typically goes:

• Both parties agree on a trained, impartial mediator.
• The mediator sits down with the parties to facilitate discussion.
• The mediator helps parties reach a resolution without offering advice or pushing them toward a specific outcome.

The goal of mediation is to help the parties resolve problems themselves. It isn’t meant to force a resolution. Mediation is only binding, if the parties reach a settlement and memorialize the agreement.

Solving an issue via mediation is almost always preferable to arbitration or litigation. It’s more likely to preserve business relationships, and it also is faster and less costly than more formal dispute resolution strategies like litigation.

Arbitration

Arbitration is a form of alternative dispute resolution that’s effectively a middle ground between mediation and litigation. Often, arbitration works like a civil trial, with both sides presenting arguments before a trained arbitrator who acts as a judge. After hearing from both sides and weighing the evidence, the arbitrator makes a binding decision.

Litigation

If all else fails, you might choose to take the contractor to court for breach of contract. Litigation allows the court to make a decision for you, and if the court rules in your favor, it may order the construction company to pay you damages.

Litigation tends to be costly and time-consuming, and some issues may drag on for years. However, if you’ve been through other options and nothing has worked, it may prove to be the only way to fix the issue.

How Lusk Law, LLC Can Help

Advocates For Life’s Obstacles and Opportunities

Sometimes, no matter how respectful and measured your approach, you may not be able to resolve disputes on your own. When this happens, an attorney may be able to help. You don’t need to wait until you’ve tried everything short of construction litigation — an attorney can help you negotiate a resolution with your contractor, pursue mediation, and escalate the issue to arbitration if need be.

Lusk Law, LLC is prepared to help you resolve construction disputes and any other issues related to real estate. Our firm has been representing members of the Frederick community and residents of surrounding areas for many years, and we hope to assist you, too.

If you’ve run into a dispute you can’t resolve on your own, let us help. We can offer you advice if you prefer to deal directly with the contractor, but we can also represent you in negotiations, various types of alternative dispute resolution, and litigation. Call (443) 535-9715 to set up a consultation today.