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Construction Dispute Resolution and Risk Transfer

13 minPRO
5/6

Key Takeaways

  • Most construction disputes originate from ambiguous contracts—a detailed SOW prevents 80% of potential disputes.
  • Dispute resolution should follow an escalation path: negotiation, mediation (70-80% resolution rate), arbitration, then litigation.
  • Builder's risk insurance protects the property during construction and is cost-effective for projects over $50K.
  • Performance bonds guarantee contractor completion but are typically only cost-effective for projects exceeding $100K.
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Test Your Knowledge

1.What is the resolution rate for construction mediation?