How does a contractor typically resolve a dispute with a client?

A contractor typically resolves a dispute with a client through negotiation, mediation, or legal action. This approach allows both parties to engage in constructive dialogue to find a mutually satisfactory solution. Negotiation is often the first step, where the contractor and client discuss their concerns directly in hopes of reaching an agreement without escalating the situation.

If negotiation fails, mediation can be employed, where an impartial third party facilitates discussions to help both sides come to a resolution. If these methods do not resolve the dispute, legal action may be necessary, involving the courts to reach a formal judgment or settlement. This structured approach is recognized as a standard practice in the construction industry, ensuring that disputes are handled professionally and efficiently, ultimately preserving the contractor-client relationship wherever possible.

Other options, like contacting a regulatory agency or allowing the client to terminate the contract, do not actively seek resolution and may overlook the potential for constructive dialogue. Ignoring the client's claims is counterproductive and can lead to further complications or legal issues.