Most construction disputes start with something going wrong.

A payment isn’t made, a claim is rejected, or the contract isn’t being applied properly. What follows is usually frustration, delay, and positions becoming entrenched.

Below are the most common problems we deal with on construction projects. If you’re dealing with any of these, the earlier you take advice, the stronger your position usually is.

Not Being Paid for Work done

This is the most common issue we deal with across construction projects. Work has been carried out, applications have been made, but payment is either not made at all or only partially paid.

In many cases, the problem is not simply about the value of the work, but how the payment process has been handled. We regularly see situations where payment notices or pay less notices have not been issued correctly, or have been missed altogether. Where that happens, the amount applied for can become payable in full, regardless of any disagreement over value.

The key is understanding your position early and taking the right steps before the situation drags on and becomes more difficult to resolve.

Withheld or Reduced Payments

Payments are often reduced or withheld on the basis of valuation disagreements, variations, or alleged defects. On the face of it, these disputes appear to be about the value of the work, but in practice they are often driven by whether the contract has been followed properly.

We regularly see deductions being made without proper justification, or without the correct notices being issued in accordance with the contract. In those circumstances, the focus moves away from opinion and onto whether the contractual process has been complied with.

Understanding whether those deductions are valid, and what your actual entitlement is, is usually the starting point in bringing these situations under control.

Delay Claims and Extensions of Time

Delays are common on construction projects, but they are often poorly managed and even more poorly documented. Disputes arise where responsibility for delay is unclear, or where extensions of time and associated costs have not been properly assessed or agreed.

We assist in reviewing delay events, establishing entitlement under the contract, and setting out a clear and defensible position, whether under JCT or NEC forms. This includes looking at the actual sequence of events, the records available, and how the contract applies to the circumstances.

Early assessment is critical. The longer delay issues are left, the more positions become fixed and the more difficult they are to resolve.

Variations and Compensation Events

Variations and compensation events are a common source of dispute, particularly where the scope of works has changed but the valuation has not been agreed.

Under JCT, disputes often arise where variations have been carried out but not properly valued or certified. Under NEC, issues typically relate to compensation events not being notified, rejected, or not assessed correctly.

We regularly see situations where work has been instructed and carried out, but the commercial position has not been properly dealt with at the time. This then carries through to later stages of the project, often forming a significant part of the final account dispute.

Getting clarity on entitlement and valuation early is key, as these issues rarely resolve themselves without intervention.

Final Account and Valuation Disputes  

Final account disputes are common, particularly where issues such as variations, delays, and deductions have not been properly dealt with during the course of the project.

By the time the final account is being discussed, positions are often already fixed. One party considers money to be due, while the other disputes entitlement, value, or both. This usually stems from matters that have built up over time rather than a single issue.

We assist in reviewing the final account position as a whole, identifying what is properly due under the contract, and setting out a clear and reasoned valuation. In many cases, dealing with the position properly at this stage avoids matters escalating further.        

Understanding Your Contract Position (JCT / NEC) 

A large number of disputes arise simply because the contract has not been properly understood or applied.

We regularly see situations where parties are operating on assumptions rather than what the contract actually says. This includes how payments should be made, how notices should be served, and how entitlement to time and money is assessed.

We assist in reviewing your position under the contract, including JCT and NEC forms, and setting out clearly where you stand. This often provides clarity early on and can prevent issues from escalating unnecessarily.

Adjudication and Dispute Resolution 

Where matters cannot be resolved commercially, adjudication is often the next step.

Adjudication is a formal process and moves quickly. It requires a clear and well-prepared position, supported by the contract and the relevant facts. Once a dispute reaches this stage, the outcome will largely depend on how well that position has been put together.

We assist both in bringing adjudications and in responding to them, ensuring that the issues are properly defined and presented. This includes payment disputes, final account matters, and wider contractual issues.

In many cases, early advice before adjudication begins can significantly improve the outcome.

Termination of Contract

Termination is one of the most serious steps that can be taken on a construction project, and it is often done incorrectly.

We regularly see situations where a contract has been terminated without the correct notices being issued, or without following the procedure set out in the contract. In those circumstances, what was intended to be a solution can quickly become a further dispute.

Equally, where a contract has been terminated against you, it is important to understand whether that termination was valid and what your position is as a result.

We assist in reviewing the circumstances surrounding termination, advising on whether it has been carried out properly, and setting out the position going forward. Getting this wrong can have significant financial consequences, so early advice is critical.

Insolvency 

Insolvency on a construction project creates immediate uncertainty and risk.

Where a contractor or subcontractor enters liquidation or otherwise ceases trading, the contractual and commercial position changes quickly. Issues arise around what work has been completed, what remains outstanding, and what can realistically be recovered.

We assist in reviewing your position following insolvency, including what rights remain under the contract and what steps should be taken to protect your position going forward.

Where You Stand and What to Do Next

If you’re dealing with any of the issues above, the most important step is understanding your position early.

In many cases, the situation can be brought under control quickly once the contractual position is properly understood and set out. Left too long, matters tend to escalate, positions become fixed, and resolution becomes more difficult.

If you need a clear, straightforward view on where you stand, get in touch and we’ll talk it through.