When construction businesses face off in a contract or payment dispute, decision makers on each side look to identify the key information and obtain clear advice to assist them to adopt a contractual position and strategy for best managing the dispute. In any construction dispute, this initial fact-finding and early advice is critical.
From there, construction disputes often begin with a preliminary negotiation of the issues in dispute and where unresolved, parties’ positions quickly become entrenched.
Early specialist legal advice helps decision makers to understand the contractual position and equips them with a strategy to navigate the issues and to influence outcomes.
The better-informed decision maker (i.e. with the benefit of early specialist legal advice) typically gains leverage, while the other (less informed) decision maker merely attempts to "hold the line".
Obtaining early advice is a low-risk, high-value step that supports any negotiation and ultimately protects the commercial position of the business.
● Do I need to speak with a specialist lawyer?
● What is the contractual position? What is the likely outcome?
● I know I can negotiate this out - do I need to spend money on lawyers?
For some decision makers, the answer to the above questions is to hold the line without obtaining legal advice and to perhaps adopt a fragile contractual position, or worse, one that is doomed to fail.
For other decision makers, whilst their opponent is pondering the questions above, they have already obtained detailed advice from a specialist lawyer and have carefully formulated a strategy based on that advice for working through the dispute.
Typically when lawyers become involved, a letter is issued on behalf of the better prepared party outlining their position and proposing next steps. The other party (often annoyed by the fact that lawyers are involved) may reluctantly seek legal advice.
The extent to which lawyers then become involved in the dispute (beyond this point) is generally a product of each of the parties' willingness to compromise and the reasonableness of their respective positions. Without an appetite for compromise, the dispute will likely escalate with significant time and money spent on contracted mechanisms of dispute resolution or court proceedings, with the better prepared party typically in the box seat. Contractual dispute resolution mechanisms are also more effective in achieving a resolution where parties have had the benefit of legal advice and are willing to compromise.
The take home message for construction businesses is simple, you have nothing to lose by seeking early specialist legal advice and carefully adopting a strategy for resolution, alternatively, you have plenty to lose if you don't.
Julian Troy, director and founder of Troy Legal, has almost 25 years' experience in providing specialist advice to construction businesses in respect of construction contracts and payment disputes. Troy Legal provides specialist advice to developers, principals, contractors, subcontractors, consultants and suppliers in construction across SEQ. Contact Julian at julian@troylegal.com.au for expert advice from an experienced construction lawyer in Brisbane.
Short answer: Early in the dispute before positions become entrenched. Early specialist advice helps you understand your contractual position, strategy for resolution and achievement of a preferred outcome. You have nothing to lose by obtaining early advice.
Short answer: You may adopt a fragile contractual position, or worse, one that is "doomed to fail," while your opposing party may already have the benefit of a detailed advice and a strategy for resolution. At this point, you may already be on the back foot.
Short answer: Yes, early specialist advice strengthens your negotiation position. It's not about escalating the dispute; it's about adopting a strong contractual position and developing a clear strategy for achieving the preferred outcome.
When construction businesses face off in a contract or payment dispute, decision makers on each side look to identify the key information and obtain clear advice to assist them to adopt a contractual position and strategy for best managing the dispute. In any construction dispute, this initial fact-finding and early advice is critical.
From there, construction disputes often begin with a preliminary negotiation of the issues in dispute and where unresolved, parties’ positions quickly become entrenched.
Early specialist legal advice helps decision makers to understand the contractual position and equips them with a strategy to navigate the issues and to influence outcomes.
The better-informed decision maker (i.e. with the benefit of early specialist legal advice) typically gains leverage, while the other (less informed) decision maker merely attempts to "hold the line".
Obtaining early advice is a low-risk, high-value step that supports any negotiation and ultimately protects the commercial position of the business.
● Do I need to speak with a specialist lawyer?
● What is the contractual position? What is the likely outcome?
● I know I can negotiate this out - do I need to spend money on lawyers?
For some decision makers, the answer to the above questions is to hold the line without obtaining legal advice and to perhaps adopt a fragile contractual position, or worse, one that is doomed to fail.
For other decision makers, whilst their opponent is pondering the questions above, they have already obtained detailed advice from a specialist lawyer and have carefully formulated a strategy based on that advice for working through the dispute.
Typically when lawyers become involved, a letter is issued on behalf of the better prepared party outlining their position and proposing next steps. The other party (often annoyed by the fact that lawyers are involved) may reluctantly seek legal advice.
The extent to which lawyers then become involved in the dispute (beyond this point) is generally a product of each of the parties' willingness to compromise and the reasonableness of their respective positions. Without an appetite for compromise, the dispute will likely escalate with significant time and money spent on contracted mechanisms of dispute resolution or court proceedings, with the better prepared party typically in the box seat. Contractual dispute resolution mechanisms are also more effective in achieving a resolution where parties have had the benefit of legal advice and are willing to compromise.
The take home message for construction businesses is simple, you have nothing to lose by seeking early specialist legal advice and carefully adopting a strategy for resolution, alternatively, you have plenty to lose if you don't.
Julian Troy, director and founder of Troy Legal, has almost 25 years' experience in providing specialist advice to construction businesses in respect of construction contracts and payment disputes. Troy Legal provides specialist advice to developers, principals, contractors, subcontractors, consultants and suppliers in construction across SEQ. Contact Julian at julian@troylegal.com.au for expert advice from an experienced construction lawyer in Brisbane.
Short answer: Early in the dispute before positions become entrenched. Early specialist advice helps you understand your contractual position, strategy for resolution and achievement of a preferred outcome. You have nothing to lose by obtaining early advice.
Short answer: You may adopt a fragile contractual position, or worse, one that is "doomed to fail," while your opposing party may already have the benefit of a detailed advice and a strategy for resolution. At this point, you may already be on the back foot.
Short answer: Yes, early specialist advice strengthens your negotiation position. It's not about escalating the dispute; it's about adopting a strong contractual position and developing a clear strategy for achieving the preferred outcome.
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