8 ways to cut disputes over unforeseen circumstances in construction

Resolution Management Consultants says commercial construction teams can reduce delays, overruns and litigation risk by planning for unforeseen circumstances before work starts and managing them continuously during the project. The guidance focuses on contract review, risk assessment, communication, scheduling and AI-driven monitoring.

Why it matters: - Unforeseen circumstances can delay commercial construction projects, trigger budget overruns and force engineering revisions. - Those disruptions can change scope, timing and outcomes, creating disputes that may escalate to litigation. - The issue is harder to manage than force majeure because unforeseen circumstances may be unexpected but still potentially preventable or manageable by project participants.

What happened: - Resolution Management Consultants outlined eight measures designed to reduce or eliminate disputes tied to unforeseen circumstances in commercial construction. - James F. Gallagher, P.E., F.ASCE, CEO of Resolution Management Consultants, said a proactive approach using risk assessment, monitoring and communication can mitigate the effects of unforeseen circumstances. - Gallagher said the goal is to improve timeliness, outcomes and profitability while lowering the risk of disputes and litigation.

The details: - A deeper contract review at the outset can help teams address risk potential and negotiate preemptive solutions instead of relying on boilerplate language. - An objective third party at project start can provide a preliminary risk assessment and identify bottlenecks before work begins. - A dynamic communications system among all participants can improve transparency and surface successes and challenges faster. - A timeline road map can help managers track whether the project is running smoothly and spot when unforeseen circumstances may affect the outcome. - Clear goals and timelines help every participant understand the project flow and individual responsibilities. - Continuous monitoring throughout the project keeps the plan current and lets teams notify participants when changes affect the schedule. - Artificial intelligence can help project management teams project how circumstances will affect outcomes, including change orders and downstream impacts. - Preemptive remedies can reduce damages and disputes by preparing responses before unforeseen circumstances occur. - Resolution Management Consultants said the list is not a complete set of actions and should not replace advice from a qualified attorney or expert consultant.

Between the lines: - The guidance frames disputes as a management problem as much as a legal one. - The emphasis on early planning suggests many project conflicts can be narrowed before they become claims. - AI appears in the list as a practical forecasting tool, not a replacement for contract language, oversight or professional judgment.

What's next: - Project owners, contractors and managers can apply the eight measures at contract drafting, project kickoff and throughout execution. - Resolution Management Consultants positions the approach as part of both project planning and dispute resolution support. - More information is available in the company's announcement.