There is a way to settle a dispute short of court
Why — act while you have leverage
Agreements with no dispute clause at all leave litigation as the only route - slow, expensive, and out of proportion to most construction disagreements.
What to look at
- An amicable-settlement step before arbitration
- Arbitration named, with a seat
- Governing law and a jurisdiction you can reach
How to check it yourself
The agreement should set out a ladder: talk first, then a named form of arbitration, with a seat and a governing law. Check the jurisdiction named is somewhere you can actually reach. An agreement silent on all of this is not neutral - it favours whoever can better afford a court case.
Where this comes from: Kolo review of Kerala construction quotations and agreements (established trade practice)
More construction agreement checks before you sign
- Agreement check passed
- Contractor background verified
- Site handover checklist agreed
- Worker-welfare rules applicability checked
- GST treatment understood before signing
- The payment schedule keeps money back until the end
- The agreement does not contradict itself
- GST is stated, and you know who pays it
- You know who you are contracting with
- Price escalation has a limit you can calculate
- Foundation extras cannot be open-ended
- Curing is the contractor's job, in writing
- The arbitrator is not chosen by the contractor alone
- There is a warranty, and it has a length
- Worker safety stays with the contractor
- Signing for a stage does not sign away everything after it
- Cancellation terms are not written by one side
- Nobody else builds your house without you knowing
- No blank spaces, no missing dates
- Money goes to the company, not to a person
- You can ask where the money went
- Delay has a consequence for both sides
- The quotation is attached to the agreement
- Force majeure is not a blanket excuse
The whole stage: Construction agreement checks before you sign