We haven’t been able to resolve a final account in our construction contract – what are our options?

If it becomes clear that the employer and contractor cannot settle the final account informally or amicably, the likely outcome is a dispute situation. A thorough and well-drafted contract will anticipate disputes and set out provisions to resolve them.

There are many options for dispute resolution, including litigation, arbitration, and mediation. If negotiation or mediation using an independent and objective third party fails, the usual next step is adjudication — a formal process.

Adjudication requires both parties to submit all their documentation and information to an adjudicator and agree to specific timescales. The timespan is usually 28 days, so it is always worth staying on top of the audit trail. This simplifies preparation of the final account and ensures that documentation is ready for adjudication if required.