Guest Blog: How to prevent and manage construction disputes in the UAE
With the complex nature of the UAE’s construction industry, conflicts can arise between the different parties involved in a project. Construction disputes can occur due to various reasons, from ambiguities in contracts to disagreements on compensation claims and damages, changes in the agreement and unanticipated site conditions.
These construction-related conflicts are time-consuming and expensive. Fortunately, there are several measures that can be implemented for resolving construction disputes.
Keep reading for tips on how to successfully avoid and manage construction disputes in the UAE.
Tips for preventing construction disputes in the UAE
The best way to resolve construction-related conflicts in the UAE is by taking steps to prevent them in the first place. Take a look below to discover more about how to avoid construction disputes in the UAE.
Implement preventative measures
There are only a few construction projects that are completed without any issues whatsoever. To prevent the most common construction disputes, the parties involved in the project should identify all the aspects that can lead to conflict, right from the planning stages. It’s also essential to identify the steps necessary to resolve these disputes.
While all risks cannot be eliminated, it is important to identify them properly. Sharing these risks with the involved parties will also help to manage them appropriately.
A realistic, accurate study of the budget and construction deadlines is also key in preventing construction disputes in the UAE. All the parties involved in the project should have a good understanding of the agreements, obligations and rights of the stakeholders. This can include the client or project owner, contractors and subcontractors, insurers and site managers.
Tips for resolving construction disputes in the UAE
However, in case conflicts in construction projects do arise, there are several methods that the parties can employ to ensure a favourable outcome for everyone.
Establish a process to manage internal conflict
One of the most effective methods on how to handle construction disputes in the UAE is to develop a process for internal management of conflict. This will require clear goals to be communicated and proper implementation of the plans to resolve conflict. Aside from these, it can also include additional project management procedures:
- Clients should be able to collect relevant information about the tracking of disputes or claims. This will help the involved parties to make timely decisions
- Claims should be screened using specific tools like schedule and estimates modelling
- Stakeholders must be aware of the influence on delays and costs and should give their opinion on the admissibility of any claims with regards to liability and damages.
Adopt the appropriate negotiating method
Negotiation must be the first step for dispute resolution in construction and should be done as soon as the conflict has been identified. Proper negotiation can help to maintain excellent business relations and is also cost-effective when compared to formal conflict resolution methods.
It’s important to choose the right negotiation style when resolving disputes in construction projects, as this will determine the eventual result. While the collaborative negotiation style is most effective for obtaining functional results, the compromising negotiation style is ideal when you are dealing with an impasse.
Know the different kinds of conflict resolution methods
Depending on the contract provisions between the involved parties, they will often have the right to undergo arbitration to settle claims and disputes. They also have the option to take the matter to court. The dispute will then be settled through a binding decision, whether by the arbitrator or judge. When it comes to more complex matters related to construction projects, it’s best to refer to an expert opinion.
But both construction litigation and arbitration are lengthy processes, which can often take several months or years to reach a decision. It involves a lot of money and time, and it is advisable to avoid these processes when resolving construction disputes in the UAE.
The best way to obtain a decision that is favourable to all parties when undergoing these processes is to act in good faith and fully comply with the agreements, particularly in suspensive conditions. This also includes complying with documentation, paper processes and communication deadlines.
Utilise alternative methods for construction conflict resolution
The involved parties can also seek alternative methods for resolving construction disputes, such as out-of-court settlements. This can not only help to find suitable solutions for construction conflicts but also minimise losses for all the parties.
Out-of-court settlements are the ideal way to disperse tensions and conflicts quickly and confidentially, as well as save valuable resources for the concerned parties.
Bear in mind that methods for legal and alternative dispute resolution in construction can only be utilised when negotiations between the parties fail to reach an amicable agreement.
Moreover, litigation should be the last resort in the event of a disagreement. This must all be recorded in contracts that are approved by the property legal advisors of each party before the signing the contract.
That concludes our guest post on managing and resolving construction disputes in the UAE! We hope this quick guide will help you determine the best course of action if conflicts arise in a construction project.
You may also be interested in our guide to the best construction companies in Dubai, which are responsible for some of the city’s important landmarks. Similarly, there are several well-known and reliable construction companies in Abu Dhabi, too.
If you’re planning to build your own home, you can browse listings for residential plots on Bayut!
