Most Construction Disputes Begin Before Construction Starts

Most Construction Disputes Begin Before Construction Starts

A construction dispute rarely begins with an argument on site.

By the time a contractor submits a claim, an employer issues a notice, or a dispute reaches formal adjudication or arbitration, the underlying problem may have existed for months—or even years.

In many projects, the foundations of a dispute are laid before construction starts.

Ambiguous contract clauses, incomplete designs, unrealistic programmes, unclear scope, poorly defined risks, inadequate tender documentation and weak communication can create conditions where disputes become almost inevitable.

This is why effective claims management should not begin when a claim is submitted. It should begin much earlier.

The Real Starting Point: Project Definition

Every construction project begins with assumptions.

What is included in the scope? Who is responsible for design development? What information will be provided, and when? What happens if site conditions differ from those anticipated? Who carries the risk of delays, price escalation, approvals or unforeseen events?

If these questions are not clearly addressed during procurement and contract formation, they can become sources of disagreement later.

A vague scope today can become a variation tomorrow.

An unrealistic completion date can become an extension of time claim.

An undefined responsibility can become a contractual dispute.

The earlier these uncertainties are identified, the easier they are to manage.

Tender Documents Can Plant the First Seeds of a Claim

Tendering is often viewed primarily as a commercial exercise: obtain competitive prices and appoint the right contractor.

But tender documents also establish the foundation for future contractual relationships.

Incomplete drawings, inconsistent specifications, missing information and unclear employer requirements can result in contractors pricing based on different assumptions.

Once construction begins, those assumptions may collide.

The contractor may argue that additional work was outside the original scope. The employer may argue that the contractor should have allowed for it. Without clear documentation, both positions can appear reasonable.

This is where claims and advisory services can provide value before a project reaches the claims stage—by identifying contractual and commercial risks during procurement itself.

Unrealistic Programmes Create Future Delay Claims

A programme is more than a schedule.

It establishes expectations about sequencing, access, approvals, design information, procurement and completion.

If the baseline programme is unrealistic from the outset, the project may already be exposed to future delay disputes.

For example, a programme may assume that approvals will be received within a certain period, materials will arrive without disruption, or design information will be issued on predetermined dates.

If those assumptions are not achievable, delay can become embedded into the project from day one.

Good planning therefore requires more than creating dates in Primavera P6 or another scheduling platform. It requires testing whether the underlying assumptions are realistic, achievable and contractually aligned.

Risk Allocation Must Be Clear

Every construction project contains risks.

The question is not whether risk exists, but who is responsible for it and under what circumstances.

Poorly drafted risk allocation can create significant uncertainty.

Consider issues such as ground conditions, design changes, inflation, access restrictions, statutory approvals, third-party interfaces and unforeseen events.

If the contract does not clearly establish responsibility, the parties may develop conflicting interpretations when the risk materialises.

Effective pre-contract risk review can help identify these potential pressure points before they become disputes.

Documentation Is Part of Dispute Prevention

Another common weakness begins before work starts: the absence of a clear documentation strategy.

When a project eventually experiences delay, disruption or additional cost, the parties need reliable evidence to establish what happened, when it happened and what impact it had.

That evidence may include:

  • Baseline programmes

  • Contract documents

  • Drawings and revisions

  • Site records

  • Correspondence

  • Instructions

  • Progress updates

  • Meeting minutes

  • Resource records

  • Cost information

Without disciplined record-keeping, even a legitimate entitlement can become difficult to demonstrate.

This is why claims management should include evidence planning from the beginning—not simply claim preparation at the end.

Early Claims Management Changes the Approach

Traditional thinking often treats claims as something negative that should be addressed only after a problem occurs.

A stronger approach is to view claims management as a form of project risk management.

It involves identifying contractual entitlements, monitoring emerging events, maintaining contemporaneous records, assessing programme and cost impacts, and ensuring that notices and contractual procedures are followed.

This creates a proactive flow:

Contract Review → Risk Identification → Clear Responsibilities → Baseline Planning → Early Warning → Proper Records → Impact Assessment → Timely Resolution

When this process is embedded into project management, potential disputes can often be identified before positions become entrenched.

Claims and Advisory Should Work Together

Claims management is not only about defending or pursuing claims.

The broader role of claims and advisory is to help project stakeholders understand where contractual, programme and commercial risks are developing—and what can be done about them.

Pre-construction advisory can include contract reviews, risk allocation assessments, tender document reviews, programme assessments and identification of potential claims triggers.

During construction, the focus can shift toward notices, records, entitlement, delay analysis, variations, disruption, prolongation costs and commercial strategy.

The objective is not to create more claims.

It is to ensure that when an event occurs, the parties understand their contractual position and have reliable evidence to resolve it efficiently.

Prevention Starts Before the Ground Is Broken

The most effective dispute is often the one that never develops.

That requires stakeholders to look beyond construction execution and examine the decisions made before mobilisation.

A well-defined scope, realistic programme, balanced risk allocation, clear contractual mechanisms and disciplined documentation can significantly reduce uncertainty.

Construction disputes may become visible on site, but their causes often begin much earlier.

The strongest claims strategy is not simply about winning disputes. It is about identifying the conditions that create disputes—and managing them before they escalate.

That is where proactive claims management and integrated claims and advisory support can make a meaningful difference to project certainty, commercial outcomes and long-term relationships.

 

Posted in Default Category on September 10 2026 at 10:28 AM
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