In the construction industry, contractors will always face the possibility of disputes. A common path that parties tend to take when dealing with disputes is litigation. However, what some contractors might not realize is that litigation is not the only way to handle disputes. Litigation can be extremely costly, time consuming, and can harm the business relationships that might be able to be salvaged. As construction lawyers in Orlando, we know that alternative dispute resolution (ADR) techniques are becoming more and more popular as opposed to litigation, and one of the techniques that can be used is negotiation.
What Are Negotiations?
In the construction world, negotiations are one of the most direct tactics that can be used to resolve disputes. However, the downside of negotiations is that it can easily be disregarded as an alternative because of a lack of effort. This form of alternative dispute resolution is a voluntary process in which the disputing parties work together to obtain a mutual agreement with unstructured discussions.
How Does Negotiation Work?
To participate in negotiations, the contractor and the party they are disputing with must find an effective negotiator that is able to take control of several focuses. The negotiator will attempt to satisfy both of the parties’ complaints without determining which party is right and which is wrong. The main duty of a negotiator is problem solving. Negotiation consists of:
- Both of the parties remaining in charge of their outcome
- No final result is charged
- Either of the parties being free to leave at any time
One of the major benefits of negotiation is that it is less confrontational, and is a great tool for situations when the parties hope to preserve their business relationship and encourage future interaction.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.