Contracts Don’t Cause Disputes, People Do

We’ve all heard it.

“It’s in the clause.”

“The contract says this.”

“They didn’t follow Clause 10.3!”

When a dispute arises on a construction site, the natural instinct is to open the contract and hunt down the clause that could win or lose the argument.

Before you do this, let’s take a step back.

Because in my experience, most of the time that the clause rarely causes the conflict. The contract may become the battlefield, but the war started long before that.

Construction disputes don’t usually come up because someone misread a contract clause.

They come up because someone didn’t document a variation.

They come up because someone assumed, rather than clarified.

They come up because expectations weren’t managed from day one.

And when things get messy, it’s not the words in the contract that fail us. It’s how we used, or didn’t use the systems around that contract.

In this article, I'll talk about why poor documentation, unclear communication, and mismatched expectations are the real fuel behind most construction disputes, and what you can do on-site to protect your team from trouble.

1. Myth: The Clause is There to Trip You

Legal teams often jump to the clause when something goes wrong. That’s their job. But on-site? Blaming the clause is often a distraction from the real cause.

A clause is not a system.

The contract is just a framework. It is expected a good recordkeeping. It is expected that people follow notice periods. It is expected that site diaries are written and read. It is expected that someone actually issued that instruction in writing.

Most disputes I’ve seen don’t happen because the contract was flawed. They happen because good contract administration didn’t happen at all.

It’s like buying a $2000 mountain bike, then riding it with a flat tire and blaming the bike when it slows down.

2. Root Cause #1: Poor Documentation

So many times that I heard the dispute that started with “But I told him on site that day…” and every time I wish I could have a time machine to tell them "document everything in writing. "

Construction moves fast. Instructions change. Site conditions evolve. If you don’t write it down, you didn’t protect yourself.

How can you protect yourself? There are so many ways:

Daily records (weather, workforce, site conditions)

Photos with timestamps

Variation logs (who instructed, when, on what basis?)

Correspondence saved properly (email trails disappear)

Submittals and approvals (verbal OK ≠ evidence)

Sounds very basic right, but missing documentation means missing leverage. In adjudication, the side with better records often wins, even if the truth is messier.

3. Root Cause #2: Unclear Communication

You’d be shocked how often multi-million dollar disputes start from someone assuming “everyone knew.”

When communication is casual, the contract becomes meaningless. Because no one’s using it. Assumption is not communication. Documentation is not just paperwork, it’s protection for both sides.

4. Root Cause #3: Mismatched Expectations

This is the most invisible one, and the most dangerous cause of conflict.

Contracts can only take you so far. What kills trust on projects is when different parties have completely different understandings of what’s supposed to happen. And most of the time, these weren’t always technical misunderstandings. They were never clarified earlier.

5. What You Should Track Better On Site (3 Practical Tips)

Firstly, no, you don’t need a lawyer on-site. All you need is a better system. Below are three tools that can prevent 80% of future disputes if you use them consistently.

Tip 1: Variation Instruction Log

Create a simple table that tracks:

• Who issued the instruction

• When it was given (date + time)

• How it was given (email, verbal, RFI response)

• Scope of change

• Cost/time implications flagged?

• Has a formal VO (variation order) been submitted?

Always back up verbal instructions with a confirmation email, even if it's just, "Following our chat this morning, we understand you're asking us to..."

Tip 2: Delay Register

Track any delay with three questions:

• What happened? (e.g., rain, late steel delivery)

• Who was responsible?

• Was anyone notified in writing?

Keep this updated daily, don’t wait for someone to ask for an extension of time.

Try to link each delay entry to site photos or delivery dockets. Evidence today is protection tomorrow.

Tip 3: Daily Site Records That Actually Help

Most site diaries are vague or incomplete. Make yours a dispute weapon.

Your Site Records Should Capture:

• Workforce on-site (numbers and trades)

• Weather conditions (especially if relevant)

• Plant used

• Progress photos

• Key decisions or changes that day

Make this a shared digital folder (cloud-based) with a clear naming system. No more “lost” records.

6. A Clause is Useless Without Administration

Even the most beautifully drafted contract clause won’t save a project if no one follows it.

Most disputes I see happen like this:

The clause says, “Written instruction required for variations.”

But variation was made verbally.

The clause says, “Notice of delay to be given within 5 days.”

No notice was ever sent.

The clause says, “Progress claims must include substantiation.”

Substantiation is missing or is being submitted weeks later.

The issue isn’t the contract, it’s the gap between the contract and the site.

Here's How You Can Bridging the gap:

• Contract summaries for site teams (not just lawyers)

• Monthly contract admin health checks (are we following notice periods? Are delays being logged?)

• Training toolbox sessions (short, practical refreshers on clauses that matter)

• You can’t expect your site foreman to quote Clause 13.4. But you can teach them to send a “just-in-case” email whenever instructions change.

7. Be Dispute-Ready, Not Clause-Obsessed

You can’t avoid disputes forever.

But you can choose how prepared you are when they show up.

The smartest teams I work with aren’t the ones with the best lawyers. They’re the ones who build discipline into their daily routines.

They document as they go.

They communicate clearly.

They check expectations early and often.

They treat contract admin as a habit, not a reaction.

So next time a dispute starts to simmer, don’t just reach for the contract clause.

Reach for the email trail.

Reach for the site photos.

Reach for the logbook.

Because nine times out of ten, that’s where the truth is hiding.

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Want to stay one step ahead of disputes? I help contractors, consultants, and small businesses build better contract habits. Reach out via emmolinamay.com or follow EM Fridays for practical advice that sticks.