Regrettably, building and engineering is prone to disputation. As New Zealand moves through a period of significant construction activity, the risk of claims is likely to rise. High demand combined with concerns about industry capacity, fragmentation and limited competition, together with the widening of tort law, is a recipe for conflict.
Disputes are a negative distraction that drain productive resource, affect cash flow and potentially wipe out margin on a project. Effective dispute resolution is an important part of any business’s risk management, and especially so in the construction sector.
The full version of this paper (please click on the link below) outlines the common causes and features of construction disputes before considering:
a. Options and strategies for avoiding and resolving construction disputes;
b. Dispute resolution clauses, with reference to multi-tiered clauses and pre-action protocols; and
c. Current and predicted trends regarding construction disputes in New Zealand.