In the complex world of construction, disputes can feel almost inevitable. But with the right approach, many disputes can be avoided altogether, saving valuable time, resources, and relationships. Avoidance isn’t about ignoring potential issues — it’s about actively managing them before they escalate. Here, we break down some often-underestimated essentials for stakeholders to keep projects on track and avoid unnecessary conflicts.

1. Communication: The Key to Avoiding Disputes

A successful approach to dispute avoidance begins with clear and open communication. The mantra is:

“Talk. Talk. Talk.”

It’s not enough to rely solely on emails or WhatsApp messages. Written communication is necessary, but it can never replace a face-to-face conversation. Why? Because the receiver shapes the message. Only when you engage directly with the other person and observe their reactions can you be sure that the message has been understood correctly. Body language and non-verbal signals play a crucial role here.

Effective dispute avoidance also requires all parties to listen actively (find out more about active listening in this blogpost). Active listening means truly paying attention without formulating a response in your head. It’s about being open to what the other party is saying, without approaching the conversation with preconceived notions. Remaining factual and respectful—without sarcasm or personal criticism—goes a long way in professional discussions. Open and respectful communication can prevent misunderstandings that often lay the groundwork for disputes.

In practice, this means making regular opportunities for direct communication a priority. Project kick-off meetings, progress discussions, and routine check-ins keep everyone aligned and ensure that issues are discussed before they escalate. Dispute avoidance starts with a commitment to communicate well.

2. Proactive Contract Management: The Power of Documentation

Another critical point for dispute avoidance is proactive contract management. Here, the motto is:

"Records, records, records."

Maintaining comprehensive documentation of all relevant steps and decisions is essential. This not only creates clarity but also prevents misunderstandings that could later lead to disputes. Every detail matters—from minutes of meetings to agreements with subcontractors and detailed records of construction progress and material deliveries.

Thorough documentation provides a clear record to return to if questions arise, clarifying what was agreed upon and why certain decisions were made. Well-organised and accessible records ensure that if discrepancies come up, stakeholders can reference documented agreements, helping to settle questions quickly and efficiently.

3. Know Your Contract: The Foundation of Dispute Avoidance

One of the most common pitfalls in construction projects is assuming you know the contract without truly understanding it.

“Do you know your contract, or do you think you know it?”

Too often, teams fall into patterns of "business as usual," relying on how things have “always been done” instead of the specific terms laid out in the agreement. But assumptions like these can lead to serious misunderstandings and conflicts.

As the saying goes,

ASSUME means it makes an ASS out of (YO)U and ME.

Rather than relying on experience alone, it's essential to carefully read and understand every clause of the contract to ensure you’re fully aware of your obligations and rights. So, remember:

Read the Contract, Don’t Assume It:

Skimming over the contract can lead to major oversights. Take the time to read it closely, understanding not only your role but also what’s expected from the other parties involved. Contracts outline deliverables, obligations, and dispute resolution processes, and knowing these details can prevent many common issues from arising.

4. Know What You’re Signing: Beyond Just Reading the Contract

It’s not enough to simply know what’s in your contract—you should also understand upfront what kind of contract you’re signing. Still, and not uncommonly, the sales team may be eager to sign a contract to meet targets or secure bonuses, and especially in the final negotiation rounds, they might “forget” to consult the project team that actually has to build it. By promising the impossible—like delivering a nuclear power plant in 12 months just because the client wants it that quickly—they’re laying the groundwork for problems later on. So, make sure your project management reviews commitments before they’re made.

During the drafting and negotiating stages, identify any grey zones or terms that leave room for interpretation. Contracts can sometimes include “weasel words” like “reasonable” or “as soon as possible.” These sound straightforward but are open to interpretation, which can lead to misunderstandings and disagreements down the line. Also, ensure clear definitions of interfaces and responsibilities when multiple teams or subcontractors are involved. If roles aren’t precisely outlined, disputes are almost inevitable as teams may clash over who is responsible for what.

And last, but not least: If the contract is in a language other than your own, make sure that the translated terms reflect your true intent. It doesn’t help anyone if you’re hesitant to ask for assistance simply because you don’t want others to think you lack understanding. Always keep in mind that misinterpretations due to language differences can lead to unintended commitments or obligations that don’t align with your expectations.

Tax avoidance is good. Tax evasion gets you into trouble.

By thoroughly reviewing these aspects before signing, you gain a clearer understanding of the commitments you’re making, helping to prevent future disputes. After all, a contract that’s carefully examined and understood at the outset is far less likely to become a source of contention later on.

Conclusion: Dispute Avoidance is Everyone’s Responsibility

Dispute avoidance isn’t about luck; it’s about planning, communication, and proactive management. By following these essentials stakeholders can create a project environment that minimises disputes and fosters collaboration.

Remember, the goal isn’t necessarily to create a dispute-free project (if only that were possible!). Instead, it’s to build a strong foundation for handling issues constructively before they become disputes. As you embark on your next project, keep these principles in mind — they just might be the difference between a smooth journey and a rocky road.