In construction, disputes are part and parcel of the industry.
Today’s video is Construction Disputes: Debunking Notice of Dispute Myths. You can watch it here or continue with this quick read.
What’s important is to know how to handle disputes and how to stand your ground.
STORYTIME
I was speaking to a client the other day and they told me they weren’t getting notices, EOTs, and variations approved.
I asked them what the rationale was that they were being given for the lack of approval.
They told me the reason wasn’t really clear. They also had a hunch that there was a problem internally with the client.
I asked if they’d issued a notice of dispute
They said they were talking about a notice of disputes but were a bit reluctant to issue anything because it’s quite aggressive.
HERE COME THE RED FLAGS!
When I hear that people don’t want to issue a notice of dispute I hear that they’re afraid to ruin the relationship or stir up the pot.
Here’s the deal…
Notice of Dispute vs. Notice of Default A notice of dispute is not confrontational!
A notice of default is confrontational!
A notice of default signals a breach.
It signals that there’s a BIG PROBLEM.
A notice of dispute signals that there’s a problem but it can be resolved as soon as it’s acknowledged.
It’s a way to communicate where and how things are starting to go wrong.
Basically, according to the contract the notice of dispute clause usually says that in an event where both parties can’t agree, senior management will meet to iron out the problem.
So, the head honchos will meet to discuss the dispute.
Issuing a notice of dispute basically means that you want senior management to get involved to sort things out.
Don’t ever be scared of using a contract in your favour.
If you’ve done the work, have stuck to the contract, and they’re not holding up their end of the contract, then YOU MUST issue a NOTICE OF DISPUTE.
Otherwise, you will run into cash flow issues, time issues, etc.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.
