5 Most Important Construction Contract Disputes with Solutions

Construction projects succeed when contracts are clear and enforceable. Nevertheless, disputes continue to challenge the industry. They delay work, increase costs, and damage relationships. Construction attorneys focus on preventing conflicts through stronger agreements. When disputes arise, precise contract language limits damage. The following five disputes are the most common — and the most costly.

1. Disputes Over Scope of Work

Scope disputes are the most frequent problem. Vague descriptions lead to arguments about who is responsible for certain tasks. Subcontractors may claim extra work; contractors may insist it was included. Attorneys reduce these conflicts by drafting contracts that define tasks in clear and specific terms. Written agreements and attached blueprints provide enforceable evidence.

2. Payment Disagreements

Payment terms often spark conflict. Contractors may delay payment over performance concerns. Subcontractors may demand funds for work they consider complete. Construction law firms prevent disputes with milestone-based payment schedules. These define when payments are released, how retainage is handled, and what conditions must be met before final payment. 

3. Delays and Scheduling Conflicts

Delays are common: weather, supply shortages, or subcontractor issues can disrupt timelines. Disputes escalate when contracts fail to assign responsibility. Construction lawyers draft agreements with force majeure clauses and liquidated damages provisions. Adhering to industry best practices promotes efficient job progress.

4. Design and Change Order Issues

Design changes are another frequent cause of disputes. Owners often request modifications that affect costs and schedules. Contractors may proceed without written approval, only to face payment disputes. Attorneys solve this by drafting strict change order provisions requiring documentation, pricing, and updated timelines.

5. Liability for Defective Work

Defective work is among the costliest disputes. Rework, delays, and lawsuits can threaten completion. Attorneys reduce these risks by including warranties, inspection rules, and enforceable quality standards in contracts. These assign responsibility for correcting problems and provide remedies when work falls short. Enlist help drafting enforceable standards and warranties through experienced construction attorneys.

Construction Dispute FAQ

• What is the most common construction dispute?
  Disputes over scope of work are the most frequent. Attorneys prevent them by drafting detailed contracts with attached blueprints.

• How can payment conflicts be avoided?
  Attorneys recommend milestone-based payment schedules that tie funding to verified progress, reducing conflict between contractors and subcontractors.

• What clauses address delays in construction projects?
  Force majeure and liquidated damages clauses assign responsibility for delays and establish fair remedies for disruptions.

• Why do change orders lead to disputes?
  Without written approvals, owners and contractors clash over costs and timelines. Attorneys draft strict change order provisions to prevent this.

• Who is responsible for defective work?
  Contracts establish responsibility through warranties, inspections, and enforceable quality standards drafted by attorneys.

Disputes are part of construction, but they do not have to control outcomes. Attorneys help contractors and developers by drafting contracts that anticipate problems and provide solutions. With over 25 years of litigation experience and $1M+ verdicts secured, Alves Radcliffe LLP protects investments and reduces risk. Strong agreements improve efficiency, safeguard finances, and build lasting relationships.

Disclaimer: This content is for educational purposes only and does not constitute legal advice.