Construction conflict avoidance involves proactive policies focused on strategic planning, clear and precise communication, and collaborative problem-solving to prevent issues from escalating into formal disputes. Essential methods include comprehensive estimates, bidding and negotiation strategies for successful business development, well-written contracts, effective documentation, thoughtful timely change order management, attention to financial management, and early risk management.
Strategies for Conflict Avoidance
Precise, Accurate and Detailed Estimates and Budgets: This is one of the most essential conflict avoidance issues a company can depend upon. Consider that in the competitive bidding world, a contract is typically awarded based on the lowest price bid. An inherant conflict can arise where the bidder focuses on capturing monies 'left on the table' and the owner is focused on realizing the most possible work for the lowest price. This can present itself as a prescription for an adversarial relationship.
Clear and Comprehensive Contracts: Ambiguous contract language is a primary cause of disputes. Contracts should clearly define the scope of work, deliverables, costs, timelines, payment terms, and dispute resolution procedures using plain, simple language. This crucial strategy includes contracts between owner and contractor, contractor and subcontractors, vendors and supplier. Contract expectations, deliverables, remedies, and resolution procedues must be common language throughout all agreements or contracts.
Proactive Risk Management: Identify potential risks early (e.g., site conditions, material shortages, design errors) and allocate responsibility fairly among the parties in the contract. Develop contingency plans and use risk indicators and parameters to manage these issues before they become conflicts.
Effective Communication and Collaboration: Establish clear and consistent communication channels among all parties, stakeholders (owners, contractors, architects, subcontractors). Hold regular project meetings to discuss progress, address concerns promptly, and foster a collaborative project culture.
Thorough Documentation and Monitoring: Maintain detailed and accurate records of all project activities, including daily progress reports, meeting minutes, instructions, and variations. Proper documentation provides a clear audit trail and helps resolve disagreements based on facts rather than emotion.
Realistic Scheduling and Goal Setting: Develop achievable project schedules and budgets that include flexibility for unforeseen events. Unrealistic expectations regarding timelines or costs often lead to disputes.
Prompt Issue Resolution: Address problems as soon as they arise. Train project managers to spot potential issues early and empower them to act quickly to resolve them before they escalate.
Independent Third-Party Involvement: Incorporate quantifiable procedures in the contract for early intervention by impartial experts or a Conflict Avoidance Advisory (CAA). These third party advisory consultants can provide useful and timely recommendations to help avoid, mitigate or resolve issues quickly and keep the project on track. Three stages of conflict include a latent dispute, an emerging conflict, and the manifested formal conflict or controversy. An on call 24/7/365, independant Conflict Avoidance Advisory service, is a uniquely affordable and necessary service, that could prove to be the best money spent to premanage potential risks and prevent, mitigate or avoid costly conflicts.
