Are You Dispute Ready?

You Don’t Prepare for Peace. You Prepare for War.

No one likes a dispute.

They’re costly, stressful, disruptive, and deeply hurting the relationships. But like rain on a construction site, disputes are not just possible, they are inevitable. Similar things like dispute, it’s not a matter of if a dispute will happen, but when it will happen.

Now that we all agree that the dispute will happen, here’s my question:

Are you dispute ready?

Or let me ask you a different way:

If you have the crystal ball to tell you, that your next project would involve the biggest dispute of your career, what would you do?

I can guarantee that you’d be meticulous.

Every instruction in writing. Every notice issued on time. Every variation recorded with timestamps, supporting documents, and photographs. You’d treat the contract like your Bible. You’d build a fortress of evidence. You’d have your head in the game, early, constantly, and without compromise.

Why? Because when you're engaged in a dispute and presenting your case to an adjudicator, mediator, or judge, your success won't depend on how pleasant everyone was. It will depend on what you can prove.

So here is my next question:

why don’t you prepare like this every time?

Think back to the worst dispute you’ve ever been through. The one that kept you up at night. The one where you said to yourself, “If I had a time machine, I’d do this differently.” Now imagine that you do have a time machine. You’re standing at the start of a new project. You’ve been gifted a clean slate. So, what’s your excuse now?

Why Disputes Are Inevitable in Construction

I know that you will say, but next project will be different, I have a feeling that the next project will not have the same issues, I'll bring all my lessons learnt from the past and it will work this time.

As much as I would love to agree with you, however, construction is a human centred activity and humans are unpredictable and that make it challenging.

Then when you add to that tight timeframes, shifting design briefs, weather delays, subcontractor coordination, cashflow constraints, and ambiguous clauses in contracts, you’ve got the perfect storm for conflict.

Disputes don’t always arise from bad intentions, everyone wanted to complete the project proudly when they entering the contract . However, as they worked along the project, below challenges starts to add to the storm of disputes:

• Ambiguities in scope – One party assumes something is included; the other assumes it’s not.

• Incomplete or late documentation – Instructions come after the fact or contradict earlier communications.

• Delay claims and concurrent events – Project schedules are pushed, and everyone blames everyone else.

• Unclear contract terms – Especially when parties use bespoke contracts or Frankenstein hybrids.

• Cultural or communication mismatches – Misunderstandings multiply when parties come from different linguistic or professional backgrounds.

• Unrealistic expectations – Especially in design-and-build or fast-tracked projects.

  
  

No matter how "collaborative" your project is, risk sits beneath the surface. Pretending it’s not there won’t make it disappear. It just means you’ll be caught unprepared when things go sideways.

What’s worse, in many cases, disputes escalate simply because early issues weren’t addressed along with the project. A variation valued at $8,000 turns into a $120,000 claim six months later, because there were no records, no formal response, and no communication.

The Cost of Avoidance

Many in the industry are conflict-averse. “if it is not broken, then don't fix it,” they say. Or: “We’ll sort it out at the final accounts.”

But kicking the can down the road isn’t conflict management, it’s conflict deferment. And when that can finally explodes, it usually does so in a much bigger, messier, and more expensive way.

Avoidance often looks like:

• Not issuing formal notices for changes or delays

• Relying on handshake agreements

• Skipping written confirmations

• Failing to challenge instructions that contradict the contract

• Letting unresolved claims pile up

  
  

What’s the result?

• Loss of entitlement – Claims that are valid in principle may be time-barred

• Loss of leverage – By the time it reaches formal dispute resolution, your position is weak

• Reputation damage – Subcontractors, consultants, or clients may walk away from future opportunities

• Mental and emotional toll – Disputes wear people down. Even seasoned professionals burn out

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Avoidance isn’t kindness. It’s negligence. And it often leads to greater harm.

Dispute Readiness: What It Actually Means

Being dispute-ready doesn’t mean you want a dispute. It means you are equipped to deal with one, should it arise.

It’s a mindset and a practice for:

• Clarity – You know your scope, deliverables, and responsibilities.

• Contract literacy – You’ve read the contract—not just the clauses you like.

• Timeliness – You issue notices, responses, and claims within the required timeframes.

• Documentation discipline – You keep contemporaneous records of instructions, delays, site conditions, and communications.

• Professional detachment – You focus on facts and evidence, not emotion or assumptions.

• Escalation strategy – You know the hierarchy: discuss → negotiate → adjudicate → arbitrate/litigate.

  
  

Being dispute-ready also means having internal systems that support you:

• File naming conventions that allow quick retrieval

• Daily site diaries with enough detail

• Variation and EoT trackers

• Clear delegation of contract admin responsibilities

  
  

Ultimately, dispute readiness is about respecting the process before there’s a problem. You don’t scramble for evidence after the issue arises. You build your case as you go, not because you’re expecting conflict, but because you’re prepared for reality.

Tools of a Dispute-Ready Professionals

Dispute readiness isn’t just theory, it’s built into your daily workflow. Here are the essential tools and practices every construction professionals should have:

• A live Variation Register – Every change, from minor clarifications to major redesigns, should be logged with date received, action taken, cost/time impact, and status.

• EoT Tracker – A table or dashboard showing delay events, notice issued date, supporting evidence, critical path impact, and whether the delay is excusable/compensable.

• Contemporaneous Records – Site diaries, photographs, weather logs, delivery dockets, and email threads matter. Time-stamped evidence is your strongest ally.

• Communication Protocols – Use formal channels. Follow up verbal instructions in writing. Get sign-off on meeting minutes.

• Claims Templates and Checklists – Standardise how your team prepares notices and claims. Templates help ensure key elements aren’t missed (cause-effect-quantum).

• Basic Legal Knowledge – Know the dispute resolution ladder in your contract. Understand the difference between adjudication, arbitration, and mediation.

• External Allies – Have relationships with trusted quantity surveyors, delay analysts, and legal advisors who can step in early to support your position.

  
  

The best professionals don’t scramble for records, they already have them. They don’t get flustered by conflict, they stay composed because their preparation speaks for them.

A Case for Contract Education

Most people in construction learn contracts the hard way, by being burned. But it doesn’t have to be that way. In fact, raising the industry’s baseline contract knowledge may be one of the most powerful dispute prevention tools available.

Too often, contractors and subcontractors sign contracts without fully understanding:

• Time bar clauses

• Notice requirements

• Payment terms and certification processes

• Indemnity and liability clauses

  
  

They rely on trust instead of process and the consequences are dire when things go wrong.

Contract education doesn’t mean turning everyone into lawyers. It means:

• Empowering site staff to spot risk early

• Equipping junior QSs and PMs with better admin habits

• Demystifying terms like “force majeure,” “liquidated damages,” and “EOT entitlement”

• Normalising documentation as part of good project hygiene—not as a sign of mistrust

  
  

Because when people understand their contracts, they make better decisions. And better decisions = fewer disputes.

Dispute-Ready Culture is a Competitive Advantage

The industry needs a mindset shift. Being dispute-ready isn’t pessimism. It’s professionalism.

You don’t prepare for peace. You prepare for war, so that if war comes, you’re not fighting blind.

A dispute-ready culture means:

• Fewer surprises

• Less finger-pointing

• Greater trust between parties

• Smoother projects—even when things go wrong

  
  

Clients, consultants, contractors, and subcontractors alike benefit when everyone plays by the rules—and knows what the rules are.

So as you walk into your next project, don’t ask:

“How can we avoid disputes?”

Ask:

“When it comes, am I ready?”

And if the answer isn’t a solid yes, it’s time to fix that. Before the claim. Before the delay. Before the lawyer gets involved.

Because the best defence in construction isn’t avoidance. It’s readiness.