THE OKLAHOMA BAR JOURNAL 22 | MARCH 2025 Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff. IT IS UNDERSTANDABLE WHY HOMEOWNERS building a new home would be upset when things don’t go according to plan. Likely the most significant financial risk most people will experience in their lifetimes, it is a very stressful time for prospective homeowners regardless of how smoothly the work progresses. But it is not uncommon for issues to arise that extend the time of performance and increase construction costs. This increases stress and can continue to grow the longer it takes to resolve issues and complete the work. The same is true of any property owner, public or private, residential or commercial – it is their property that is being improved, usually at great expense. Owners are entitled to competency, fairness and professionalism when dealing with designers and contractors hired to improve their property. They are the ones paying for the services and who will use the property long after the designers and contractors have left the picture. This is, in part, why property owners can be very demanding and sometimes difficult to work with, even when most or all the work is routine. On the flip side, designers and contractors who undertake the performance of their obligations in good faith and, ultimately, fulfill their contractual duties in accordance with the terms of their agreements and/or industry standards should be paid for their services. A disagreement resulting in payments being stopped can cause an extraordinary amount of stress on contractors and designers who have employees, subcontractors and others to pay. Sometimes, a disagreement can progress to a claim situation, where a contractor or subcontractor must act according to their contract to preserve claims for increased costs and time extensions. Contractors or subs also may be required by statute to perfect a lien or a bond claim, which further increases an already stressful situation. If unresolved, such disputes can end up in litigation or arbitration (or both), sometimes involving many parties who are affected, as noted below. Unsurprisingly, the parties’ stress will continue to grow the longer it takes and the more money that is spent during this stage of the process. Lawyers must navigate these complexities when figuring out what, in fact, is at issue. This is no small task, as there is always an underlying complexity that can increase distractions, consternation and uncertainty. For example, a dispute over a simple, one-room add-on to a residence may involve only two parties (the owner and the contractor), but the work itself might require materials from multiple vendors. If the work involves components that require the services of licensed trades – such as electricians, plumbers or surveyors – even more parties are necessary for the completion of the overall work and may be implicated in a potential dispute. Commercial or public projects add further layers of involvement in the Alternative Dispute Resolution Effectively Mediating Construction Disputes By Marvin Laws
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