Conflicts among Contractors: Delving into Legal Obligations and Duties during Disputes

In the dynamic world of construction, disputes are an unfortunate but common occurrence. These disagreements can stem from various sources, such as changes to the scope of work, delays, and payment issues.

One of the primary causes of disputes is unexpected site conditions, defective specifications, or additional work ordered by the owner. These changes can lead to disputes over the responsibilities and costs associated with them. It's essential for contractors to provide timely notification to the owner of any issues on the project to avoid potential disputes.

Payment disputes are another common issue, particularly between general contractors, subcontractors, and suppliers. These disagreements can be complex and may require the involvement of legal professionals.

When it comes to legal disputes, construction operators often find themselves in court over the interpretation or execution of construction contracts. For instance, a case at the Oberlandesgericht Karlsruhe saw a construction company suing homeowners over delayed completion of a single-family house and payment of remaining work fees. The case, decided in June 2025, involved issues about delay damages and interest on readiness payments.

Another dispute, handled by the Oberlandesgericht Stuttgart, involved a construction company and a client disputing increased contract prices over alleged tax-related price shifting. The court ruled the contracts valid and not constituting illegal labor as of early 2025.

In addition, the Oberlandesgericht Wien dealt with cartel-related claims affecting construction companies like Pichler Bau GmbH in January to March 2025.

Most construction contracts have a provision for disputes or dispute resolution. However, without proper documentation, collecting all the facts and information related to a dispute can be challenging due to the number of platforms on which people communicate. Proper documentation, such as daily reports, accurate schedules, and meeting minutes, is crucial in resolving construction disputes.

Seeking legal counsel early and often allows a contractor to have strategic guidance while continuing the project. Lawyers should remain objective and talk their clients down from an extreme position to a reasonable one during dispute resolution.

It's also important to note that contractors are typically responsible for taking all actions in pursuing a claim or dispute, including timely notice, preparing documents, and ensuring they meet contract requirements. Failing to follow the requirements in a contract's dispute resolution process can waive a contractor's claims.

Construction cases can be expensive to resolve due to the large volume of documents involved and the need for expert witnesses. Therefore, it's crucial to avoid delays in addressing issues. Waiting until a project is finished or nearing completion to address an issue can force the contractor to finance the cost of the issue in dispute.

Contractors generally have the right to enforce contract terms, including seeking additional time and costs for changes and delays. However, it's essential to remember that contractors rarely, if ever, have the right to refuse to perform work - even changed work - due to a pending dispute.

In conclusion, construction projects, despite being meticulously planned, can still encounter disputes. Proper documentation, early legal intervention, and a clear understanding of contract terms are key to navigating these challenges and protecting your interests.

Conflicts among Contractors: Delving into Legal Obligations and Duties during Disputes