Building projects often involve multiple parties, complex contracts and high financial stakes. When disagreements arise over workmanship, delays or payments, they can quickly escalate into serious disputes. Construction litigation provides a legal framework for resolving these conflicts when negotiation or mediation fails.
This article explains what construction litigation is, the types of disputes it covers and how specialist commercial property solicitors can help you achieve a fair and efficient resolution.
What is construction litigation?
Construction litigation refers to the legal process of resolving disputes within the construction industry through the courts. These disputes can involve homeowners, developers, contractors, subcontractors, architects or suppliers.
Although litigation is generally seen as a last resort, it may be necessary when parties cannot resolve issues through informal means. Court proceedings provide a binding judgment that can enforce contractual rights, recover damages or order specific performance.
Common types of construction disputes
Construction disputes can arise at any stage of a project. The most common include:
- Non-payment or underpayment for work completed
- Poor workmanship or defective materials
- Project delays and extensions of time
- Breach of contract or failure to meet agreed specifications
- Disagreements over variations or scope changes
- Professional negligence by designers or engineers
These issues can be costly and disruptive, especially when they halt progress or strain relationships between parties.
Steps before litigation
Before resorting to the courts, most construction contracts require parties to attempt alternative dispute resolution methods such as negotiation, mediation or adjudication. These options can save time and costs compared to full litigation.
- Mediation involves a neutral third party helping both sides reach a voluntary settlement. It is confidential and non-binding unless an agreement is reached.
- Adjudication is a quicker process, often used for payment disputes under the Housing Grants, Construction and Regeneration Act 1996. An adjudicator issues a decision within a tight timeframe, which is temporarily binding unless overturned by arbitration or court proceedings.
If these steps fail or are unsuitable, litigation may be the only option to resolve the matter conclusively.
The construction litigation process
Construction litigation typically follows several key stages:
1. Pre-action protocol
Before filing a claim, parties are expected to exchange relevant information and explore settlement. The court encourages compliance with the Pre-Action Protocol for Construction and Engineering Disputes.
2. Issuing a claim
If settlement is not achieved, the claimant files a claim form in the Technology and Construction Court (TCC), which specialises in complex construction cases.
3. Defence and evidence
The defendant responds with a defence and both sides gather evidence such as contracts, expert reports, photographs and witness statements.
4. Case management
The court sets a timetable for disclosure, witness statements and expert evidence to ensure an efficient process.
5. Trial and judgment
At trial, each side presents their evidence and arguments. The judge then issues a binding judgment, which may include damages, specific performance or costs orders.
Remedies available
Depending on the nature of the dispute, possible outcomes include:
- Damages: Financial compensation for losses suffered.
- Specific performance: An order requiring a party to fulfil their contractual obligations.
- Injunction: A court order preventing further breach or damage.
- Declaration: A judicial statement clarifying each party’s rights under the contract.
Courts aim to put the injured party in the position they would have been in had the contract been properly performed.
Related reading: Liquidated Damages vs Penalties in Construction Projects
The importance of expert evidence
Construction disputes often rely heavily on technical details. Expert witnesses, such as quantity surveyors or engineers, provide impartial opinions to help the court understand complex construction issues. Their reports can be crucial in determining liability and quantifying losses.
Engaging the right experts early in the process can significantly strengthen your case.
Benefits of early legal advice
Taking legal advice as soon as a dispute arises can help you avoid costly mistakes. A solicitor specialising in construction law can:
- Review contracts and identify breaches or weak points
- Recommend negotiation, mediation or adjudication before litigation
- Manage expert evidence and prepare court documents
- Represent you in the Technology and Construction Court
Early intervention can also improve your chances of settlement before proceedings begin, saving both time and money.
Related reading: Liquidated Damages & Construction Timelines
Protecting your project and reputation
Litigation can be disruptive but it is sometimes necessary to protect your financial interests and reputation. With professional guidance, construction disputes can be resolved efficiently and fairly, ensuring minimal impact on future projects.
Please note that this article is solely for informational purposes. It’s not a substitute for legal advice. We encourage readers to contact Osbourne Pinner for case-specific guidance.
For clear, practical advice on construction litigation and building disputes, contact our commercial litigation team. We have extensive experience representing clients in construction and engineering claims.
We’ll start with a free 30-minute session to discuss your case. That can take place remotely or at one of our offices in Harrow, Canary Wharf, Piccadilly Circus and Manchester. To take the first step today, call 0203 983 5080, email [email protected] or fill out the form below.
