[Contribution] The key to winning a construction dispute lies in thorough contract writing and change management.

Construction work involves numerous steps, including design, construction, and supervision, and involves multiple parties, from the owner to the subcontractor. The longer the construction period, the greater the possibility that unexpected variables will occur, which will soon lead to acute disputes. In particular, construction disputes require consideration of issues such as labor, materials, and civil complaints, as well as interference with prior and subsequent processes, so early response is most important.

The most effective way to win a construction dispute is prevention, and the first step is drafting a contract. When reviewing drawings and contracts, it is essential to carefully consider and codify all risks that may arise for each process after construction begins. In particular, specific and clear information must be provided to prevent differences in interpretation between the parties in the future.

Additionally, due to the long-term nature of construction, numerous changes are bound to occur on site. However, 'verbal agreements', which are commonly used in practical settings, inevitably face limitations in proof in the event of a post-facto dispute. Even minor changes must be recorded in writing and signed by both parties. In particular, since the relationship between changes to a contract becomes the standard for its effectiveness, it is also necessary to establish a basis, such as writing process meeting minutes, or to clearly record the date and time of the change.

If construction is suspended or resumed, the reason and date and time, and for delays in construction, the cause and responsibility must be written in writing. If the cause of the delay lies with the orderer, this must be officially notified and recorded in order to secure an advantageous position in future liquidated damages disputes. In addition, in the event of a dispute, which method to choose among mediation, arbitration, and litigation should be specified in advance in the contract to establish a rapid response system.

Ultimately, the surest strategy to win a construction lawsuit is to thoroughly reflect all possible scenarios in the contract and to keep all changes in the construction process in writing. If necessary, it is most important to take preemptive action to eliminate the seeds of potential disputes from the contract conclusion stage through the assistance of legal experts. This is because thorough contract writing and thorough change management are the surest means of preventing the possibility of disputes and the best way to secure an advantageous position.

Reporter Lee Dong-oh (canon35@mt.co.kr)

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[Contribution] The key to winning construction disputes lies in thorough contract writing and change management (link)