Latest news

13th June 2024

What's the biggest cost of a construction contract dispute?

When we think of the costs associated with disputes and disagreements, we tend to focus on the financial costs. After all, making a profit is fundamental to business survival, so anything that threatens our ability to make money and pay ourselves and our team at the end of the month is naturally going to be at the front of our minds.

But what about the other, potentially more severe costs on our health and wellbeing? The construction industry is tough physically - always has been, and it often teases the mind and tests our patience, but we are increasingly waking up to the mental health impacts of working in the sector. However, the HSE is describing the mental health issue in construction as a 'hidden crisis'.

This is reflected by the fact that there are approximately two workers in construction taking their own lives every day, according to the ONS. This makes workers in the sector nearly four times more likely to die by suicide than in any other industry.

Is it because of the challenges in working in an ever-changing environment? Is it because the industry is populated mainly by a gen X that are not so 'au fait' with tech, and a bit 'nonplussed' about being too cautious?

It is said that one of the main reasons why mental health has never really been talked about in construction until recently is because of the stigma associated with it. The sector has been slow to break this and buried its head in the sand for far too long, but that's all changing thanks to a number of excellent initiatives including Mates in Mind and Minds Matter.

Disputes add stress to an already difficult working environment

The causes of mental health issues are extremely varied and for many people working in construction they could lie mainly outside of their working day. But even if this is the case, a stressful working environment is only going to compound their issues.

One of the most stressful situations any construction sub-contractor will face is when a dispute occurs. They often result in one party losing out financially - usually the sub- contractor - and that can have massive consequences on business owners. For those involved, the stress resulting may not only mean their livelihood is at stake, but their home and even their relationships.

It goes without saying that nobody needs this kind of stress in their lives. Hence why we should do everything we can to avoid contract disputes and try to resolve them in earnest when they do arise. Unfortunately, however, that is not always possible for all kinds of reasons - difficult personalities involved, unreasonable behaviour, unfavourable contract terms that have already been agreed to, lack of evidence to support claims, and much more.

Get help before the pressures mount

When you're embroiled in a contract dispute, the problems facing you can seem insurmountable. But they are not when you get the right people to support you. If you've got a supportive family and friends you can depend on, that's a great starting point, but that may not be enough to get you through if your opposing party is playing hardball. That's the point at which you need the support of a legally trained specialist like Quantum Consult who can help take the heat out of the situation and help you reduce the stress. Don't bottle it up. Reach out.

Firstly, we can give you a perspective on your dispute based on our decades of experience - we've seen an awful lot in our 30 years in business and we've been around watching the changes. We will probably have been involved in disputes similar to yours already. This will help put your mind at ease - you will know that you won't be in this alone and we can begin helping you resolve your issues using an approach that has worked successfully for others.

Secondly, we have the ideal combination of expertise - legal training and professional qualifications blended with a construction background rooted in quantity surveying. So, we know exactly how building sites work, and we understand the finer detail of contracts and how to resolve disputes professionally and within the legal frameworks that exist.

Ultimately we can bring order to what may seem like chaos, power to your elbow, and our support is available until we get a resolution. Things may not always go completely in your favour, but where we are not able to provide a solution that goes 100% your way, we will certainly minimise the impact on you and your business.

There is obviously a cost to bring in Quantum Consult to help you resolve your dispute, and that will vary according on your circumstances. And whilst you may be thinking that additional costs may not be feasible at a time when your business may be about to take a financial hit, that would be like being the King with his medieval armoury without time to see the machine gun salesman.

Think differently by balancing the financial costs with the potential for a positive outcome and the reduced stress brought by knowing that someone's fighting your corner to bring closure - that's going to have much more important long term benefits.

To discuss how Quantum Consult can help you resolve your contractual issues, please contact us.

RICS member logo, providing Quantum Consult clients with independent assurance on the quality of our services
Chartered Institute of Arbitrators (CIArb) member logo, the professional body for dispute avoidance & dispute management
ociety of Construction law member, supporting its aims to promote the adoption and understanding of construction law