In March 2025, Associate Director Natalie Warren joined the Building Engineering Services Association (BESA) for a look at the ever-present issue of conflict in construction projects. In her discussion with Abiola Aderibigbe, BESA’s Head of Legal and Commercial, she covers a range of topics from the background to conflict through to what the future holds for conflict avoidance and dispute resolution.
This summary of the webinar is based on BESA’s blog – the entire webinar can be viewed here.
Conflict Avoidance in Construction: A Necessity, Not an Option
Disputes in construction are common, often stemming from project delays, budget overruns, and contractual disagreements. While they may seem inevitable, proactive conflict avoidance strategies can significantly reduce risks, saving time, money, and professional relationships.
Causes & Barriers to Conflict Avoidance
Poor communication, unclear contractual obligations, and ineffective contract administration are leading causes of disputes. However, industry traditions, rigid hierarchies, and a reluctance to adopt collaborative practices create additional barriers to conflict prevention. Without clear mechanisms in place, misunderstandings persist, leading to costly legal battles.
The Changing Landscape of Dispute Resolution
The Technology and Construction Court (TCC) has seen a rise in disputes related to complex software and IT infrastructure in recent years, along with disputes around fire safety—particularly following the Grenfell disaster. However, a shift towards early intervention and alternative dispute resolution (ADR) was supported by the TCC.
Key Strategies for Conflict Avoidance
There are a few key considerations in approaching conflict avoidance:
- Contract Awareness & Risk Management: Clear documentation, early contract reviews, and risk assessments help prevent disputes before they arise. Understanding risk and contractual processes are critical to success.
- Effective Communication & Collaboration: Establishing clear communication channels and structured contract administration ensures project alignment.
- Independent Third Parties: Mediators and adjudicators facilitate fair resolutions without disrupting projects.
The Business Case for Conflict Avoidance
Disputes not only drain financial resources but also damage reputations. In an industry where reputation drives opportunities, preventing conflicts is a strategic necessity. A proactive approach ensures fair risk allocation, preventing undue burdens on smaller firms. Fair risk allocation should reduce the risk of conflict and in turn, reduce the costs associated with disputes, both directly and indirectly.
The Future: A More Collaborative Industry
Initiatives like the Conflict Avoidance Pledge (led by RICS) are encouraging a shift towards early intervention and equitable contracting. With growing court support for ADR and a move away from excessive risk transfer, the construction industry is gradually embracing conflict avoidance as best practice.
The takeaway? Avoiding disputes isn’t just smart—it’s essential for sustainable growth. Should you need more advice on any of the topics touched upon here, get in touch with us today.
