Definition

In an APC context, a dispute arises when one party asserts a claim against another and that claim is rejected or ignored. The RICS guidance note on Conflict Avoidance and Dispute Resolution in Construction distinguishes between a conflict (a difference of opinion that has not yet crystallised) and a dispute (a claim that has been asserted and rejected). Recognising this transition allows professionals to intervene before formal resolution is needed.

Why this matters for Conflict Avoidance, Management and Dispute Resolution

  • APC candidates must be able to identify at least five common causes of disputes in the built environment and explain how each can be mitigated.
  • A surveyor who identifies risk early and advises the client proactively demonstrates the competence and service obligations required by the RICS Rules of Conduct.
  • Disputed final accounts, defects claims and payment disputes are among the most common situations a newly qualified surveyor will encounter; understanding their causes is essential day-one knowledge.

Key principles

Unclear or ambiguous contracts

Poor contract drafting is the single most common cause of construction and property disputes. Ambiguous scope descriptions, undefined change control and vague payment provisions all create the conditions for disagreement. A well-drafted contract read and understood by all parties removes most of the ammunition for later claims.

Poor communication and information management

Disputes frequently arise from a breakdown in communication: instructions not confirmed in writing, design changes communicated verbally without a variation order, or site queries answered informally and later disputed. Maintaining a clear document trail — correspondence logs, meeting minutes, instruction records — is among the most practical protective steps a surveyor can take.

Payment issues and cash flow

Late payment or underpayment is a leading cause of construction disputes. The Housing Grants, Construction and Regeneration Act 1996 introduced statutory rights to interim payment, a payment notice regime and the right to suspend work for non-payment. Contract administrators must issue payment notices on time and in accordance with the contract provisions.

Defects and quality disputes

Disputes about whether works meet the required standard arise from imprecise specifications, inadequate inspections or failure to follow the defects liability procedure. Clear specifications and prompt issue of defects lists at practical completion reduce the scope for argument.

Programme and delay

Extensions of time and loss and expense claims are among the most technically complex construction disputes. They arise from concurrent delays, disputed risk events and inadequate contemporaneous records. Contractors should be encouraged to maintain detailed delay records throughout the project, not reconstruct them when a dispute is imminent.

Relevant RICS guidance and legislation

  • RICS guidance note: Conflict Avoidance and Dispute Resolution in Construction — identifies root causes and recommends preventative measures.
  • Housing Grants, Construction and Regeneration Act 1996 — governs payment rights and the statutory right to adjudication in construction contracts.
  • Arbitration Act 1996 — provides the framework for arbitration as a final binding resolution mechanism.
  • Pre-Action Protocol for Construction and Engineering Disputes — requires parties to attempt to narrow the issues and explore settlement before commencing proceedings.
  • RICS Rules of Conduct (effective 2 February 2022) — Rule 2 (competence) and Rule 4 (service) underpin the obligation to advise clients on dispute prevention.

Ethics and Rules of Conduct angle

Rule 4 of the RICS Rules of Conduct (service) requires members to act in the client's best interests. Failing to advise a client of a foreseeable dispute risk is a breach of the service obligation. Rule 2 (competence) requires the surveyor to know the common causes of disputes in their sector. A surveyor who identifies a dispute risk and remains silent — whether through negligence or to avoid an awkward conversation — falls short of both rules.

APC-style Q&As

Q (Level 1)Name five common causes of disputes in construction and property.

Ambiguous contract terms, poor communication and inadequate record-keeping, payment disputes, defects and quality disagreements, and programme delays and extensions of time are the five most commonly cited causes — each addressable through careful contract drafting, proactive communication and robust documentation.

Q (Level 1)What is the difference between a conflict and a dispute?

A conflict is a difference of opinion or interest between parties that has not yet been formally asserted. A dispute arises when one party makes a claim and the other rejects or ignores it. The distinction matters because conflicts can often be resolved informally through communication, whereas disputes may require formal ADR mechanisms.

Q (Level 2)How does poor record-keeping contribute to disputes, and what can a surveyor do to address it?

Poor record-keeping means that when a dispute arises, neither party can prove what was agreed or what caused a delay — the dispute turns on witness credibility rather than contemporaneous evidence. A surveyor should confirm all instructions in writing, keep site diaries and ensure variations are recorded before work proceeds, not reconstructed from memory afterwards.

Q (Level 2)What rights does a contractor have under the Housing Grants, Construction and Regeneration Act 1996 if the employer fails to pay on time?

The Act gives the contractor the right to suspend work on seven days' notice and the right to refer a payment dispute to adjudication at any time. The employer must serve a pay-less notice by the prescribed date to withhold any amount, specifying the basis of the withholding; failure to do so means the notified sum becomes due in full.

Q (Level 3)You are contract administrator on a project where the contractor has submitted a substantial extension of time and loss and expense claim. The records are poor. How do you advise the client?

(example) I would assess what contemporaneous records exist — site diaries, correspondence, programme updates — and identify the gaps. I would advise the client that inadequate records increase both the cost of assessing the claim and the risk of an adverse adjudication decision, and engage a delay analyst to reconstruct the as-built programme as far as the evidence permits. If the records are genuinely insufficient to disprove the claim, I would advise whether a negotiated settlement is more cost-effective than adjudication. I would also recommend implementing a proper record-keeping protocol immediately to protect the client's position on the remainder of the project.