Situations may occur that lead to disagreements between the homeowners and the contractor. When and/if this does happen, it is important to have a mechanism in place to solve these problems and avoid costly construction delays. In many cases, a construction manager can handle conflict resolution. However, a construction attorney should be consulted during the drafting of the contract in order to ensure there is a clause that provides a streamlined dispute resolution procedure. This will save time and money. The clause will typically have three elements:
1. The parties will agree to attempt to negotiate in good faith.
2. If that does not work, the parties agree to mediation.
3. If that does not work, the parties agree to arbitration.