Construction, Dispute Resolution
Don’t mistake a strong working relationship for legal security
- Written by: Samuel Okoronkwo
- Published on:
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Strong working relationships are an important part of completing a construction project on-time and on-budget. They help maintain clear communication and safe workplace environments. But, when it comes to disputes, they are effectively useless.
In some cases, having a strong working relationship may help to maintain civility during dispute resolution. However, when tensions are high, most people will default to protecting themselves over all else. Whether intentionally or not, this can lead to faded memories or unreliable recollections.
The only way to safeguard a construction project is with an ironclad contract backed up by rigorous physical evidence.
You cannot rely on relationships during dispute resolution
It has been proven, time and time again that, in matters of conflict, emotion and self-preservation overpower logic and loyalty. We all would like to think that we are the exception to the rule but when it comes to working relationships in construction, there is a reason (beyond legal requirement) that certain protocols must be followed.
Relying on working relationships is risky because:
- Emotions often escalate to personal attacks
- Irreparable damage is done to the bond
- Unpredictability can lead to betrayal
Not only is it in the best interest of the construction project to not rely on these relationships, but it is also important for the sake of protecting the relationship itself. While dispute resolution is not something people enjoy going through, it is still possible to maintain strong working relationships with other parties after a resolution has been reached.
What happens when you rely on relationships over evidence
It is not a matter of opinion; relationships do not provide legal security. While there will be cases where a verbal agreement does come with certain security, a “good-working relationship” simply does not.
Here is why:
- Relationships are effectively irrelevant to adjudicators
- Power imbalances can potentially increase risk of manipulation
- Personal relationships can cloud judgement
- Without written record, it is a game of “she said, he said, they said”
Maintain the relationship and protect the project
All of this is not to say that you should not aim to forge strong working relationships during the lifecycle of a construction project. As I have already stated, these relationships do play a crucial role in moving a project forward but can become a barrier when a project stalls.
That is why, no matter how strong your working relationships are, you need to have a contract and paper trail that will act as impartial evidence during cases of disputes. If these relationships are truly as strong as you believe then everyone should easily be on the same page for how records will be kept.
Should you have concerns that anything has potentially weakened your position in dispute resolution, reach out to a member of our team.
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