A. Definition of payment disputes in construction • B. Prevalence of payment disputes within the construction industry • C. Significance of understanding legal frameworks and dispute resolution strategies II. Legal Framework for Payment Disputes • A. State and Federal Laws Governing Construction Contracts o 1. Mechanic’s Lien Laws o 2. Prompt Payment Acts o 3. Contractual Clauses Regarding Payment Terms • B. Key Legal Concepts o 1. Substantial Completion o 2. Change Orders o 3. Liquidated Damages III. Common Causes of Payment Disputes in Construction • A. Incomplete or Ambiguous Contract Documentation o 1. Lack of detailed specifications o 2. Unclear payment terms • B. Delays in Project Completion o 1. Weather-related delays o 2. Contractor-caused delays • C. Disputes over Change Orders o 1. Scope of work modifications o 2. Pricing disagreements • D. Poor Communication and Documentation o 1. Inadequate progress reports o 2. Lack of timely dispute notifications IV. Strategies to Minimize Payment Disputes • A. Pre-Contract Measures o 1. Thorough contract review o 2. Detailed scope of work definition o 3. Clear payment schedule and milestones • B. During Project Execution o 1. Regular progress meetings and communication o 2. Detailed documentation of project changes o 3. Prompt review and response to payment applications • C. Dispute Resolution Mechanisms o 1. Negotiation and mediation o 2. Arbitration o 3. Litigation (as a last resort) references(May be modified as needed)References Alotaibi, B. S., Waqar, A., Radu, D., Khan, A. M., Dodo, Y., Althoey, F., & Almujibah, H. (2024). Building information modeling (BIM) adoption for enhanced legal and contractual management in construction projects. Ain Shams Engineering Journal, 15(7), 102822. Das, M., Tao, X., Liu, Y., & Cheng, J. C. A Blockchain-based Integrated Document Management Framework for Construction Applications. El-Sayegh, S., Ahmad, I., Aljanabi, M., Herzallah, R., Metry, S., & El-Ashwal, O. (2020). Construction disputes in the UAE: Causes and resolution methods. Buildings, 10(10), 171. Kalogeraki, M., & Antoniou, F. (2024). Claim Management and Dispute Resolution in the Construction Industry: Current Research Trends Using Novel Technologies. Buildings, 14(4), 967. Khawaja, E. U. R., & Mustapha, A. (2021). Mitigating disputes and managing legal issues in the era of building information modelling. Journal of Construction in Developing Countries, 26(1), 111-130. Lambie-Hanson, L., Rentezelas, J., & Santucci, L. (2020). Deconstructing Mechanic’s Liens (No. DP 20-04). Federal Reserve Bank of Philadelphia. Matarneh, S. (2024). Construction Disputes Causes and Resolution Methods: A Case Study from a Developing Country. Journal of Construction in Developing Countries, 29(1), 139-161. Naji, K. K., Mansour, M. M., & Gunduz, M. (2020). Methods for modeling and evaluating construction disputes: A critical review. IEEE Access, 8, 45641-45652. Shaikh, H. H., Zainun, N. Y., & Khahro, S. H. (2020, May). Claims in construction projects: A comprehensive literature review. In IOP Conference Series: Earth and Environmental Science (Vol. 498, No. 1, p. 012095). IOP Publishing. Shash, A. A., & Habash, S. I. (2021). Disputes in construction industry: Owners and contractors’ views on causes and remedies. J. Eng. Project Prod. Manage, 11(1), 37-51. Sweet, Schneier, & Wentz. (2015). Construction Law for Design Professionals, Construction Managers, and Contractors (1st ed.). Cengage Zhang, Y. (2024). Research on Dispute Resolution Mechanism for Construction Contract Disputes Based on Civil and Commercial Laws. Science of Law Journal, 3(1), 10-14.
