Construction, Dispute Resolution

Your construction contract is the blueprint for dispute resolution

Written by: Samuel Okoronkwo

Published on: March 25, 2026

When a dispute arises during a construction project, your contract will be the blueprint for resolution. In some cases, this is meant quite literally as many contracts will contain information pertaining to dispute resolution.

This will provide guidance on:

Dispute procedures
Prevention methods
Rights to adjudication

At the very least, it will act as a comprehensive record for a dispute, laying out the terms of a project and aid in determining if those terms have been met.

Choosing the right contract

When choosing which type of construction contract will help move a project forward, there are a variety of options (fixed price, JCT, NEC, etc.)

Whichever you choose, the foundations for all contracts should be:

Contract amount
Scope of work
Project schedule
Payment terms
Warranties
Dispute resolution

Typically, fixed-price contracts tend to be the most popular but it is worth exploring other options to ensure the specifics of your project will be met.

Contract drafting

Errors or oversights during the process of drafting a contract not only make dispute resolution more difficult but could even be the reason a dispute arises in the first place.

During pre-contract negotiations, it is important to be aware of:

Misunderstandings
Confidentiality breaches
Lack of due diligence
Failure to address key issues

Resolving a dispute (or even navigating a project) can become much more difficult when you’re working from a poorly drafted contract.

What happens if a contract does not include adjudication?

Adjudication does not have to be explicitly stated in a construction contract to be used as a method for dispute resolution. The right to adjudication is granted by the Housing Grants, Construction and Regeneration Act 1996. It is a right that cannot be refused without fair reason and is not a mandatory requirement of construction contracts.

However, it is still advisable to include some kind of dispute resolution agreement in your contract – whether it is adjudication or another method of ADR (Alternative Dispute Resolution). This inclusion will make navigating the process a lot simpler, as will seeking legal advice.

This legal advice can be sought at any stage. At Mercantile Barristers, we provide legal support from drafting the contract to preparing for dispute resolution.

Get in touch with one of the team to learn more about our services.