Preventing construction disputes before they escalate: why early commercial intervention matters

Matt Clark, Managing Director, GVE Commercial Solutions (Building) Ltd

Construction disputes rarely begin with an adjudication notice, a formal claim or legal correspondence. They usually start much earlier — with an unclear responsibility, a poorly managed change, a missed conversation or an issue that has been allowed to remain unresolved.

With construction businesses continuing to face commercial pressures, supply chain challenges and uncertainty across the market, identifying and addressing risks early is becoming increasingly important.

Recent industry developments, including continued construction insolvencies and businesses reassessing their exposure to certain sectors, highlight the importance of strong commercial controls and effective risk management throughout the project lifecycle.

For Commercial Directors, Commercial Managers and Quantity Surveyors, the challenge is not simply resolving disputes when they arise. It is recognising the warning signs and taking action before issues become significantly harder and more expensive to resolve.

Matt Clark, Managing Director at GVE Commercial Solutions (Building), has more than 30 years’ experience in construction commercial management, quantity surveying and dispute resolution, including senior commercial roles with Willmott Dixon and Balfour Beatty. He specialises in helping contractors and subcontractors manage contractual risk, resolve issues and improve commercial outcomes.

His experience has shown him that disputes are rarely sudden.

“Disputes usually start much earlier than the point where they become formal. It might be a lack of communication, consistent late payment, a project falling behind programme, parties not following contractual procedures or simply avoiding difficult conversations.”

Why commercial issues escalate

Construction projects involve multiple stakeholders, competing priorities and constant change. When teams are under pressure, it can be tempting to defer difficult conversations or assume an issue will resolve itself.

The problem is that unresolved issues rarely remain unchanged.

“People across construction projects are incredibly busy, and sometimes it feels easier to put a problem to one side and deal with it later. The difficulty is that these problems rarely disappear. They tend to multiply and increase in size and value, making them much harder to deal with further down the line.”

Recognising when intervention is needed

Effective commercial management is about identifying potential issues early and putting controls in place before they develop into disputes.

“A good Commercial Director or senior Quantity Surveyor should be identifying potential issues before they become problems and putting measures in place to control them,” explains Matt.

“Formal intervention may happen when an issue becomes serious, such as when formal claims or legal correspondence are involved, but the most effective intervention happens much earlier. Usually, that point is when programme or budget pressures start to emerge.”

Early intervention is not about creating conflict. It is about understanding the position, establishing the facts and agreeing a practical way forward.

Bringing clarity to difficult projects

When GVE is brought into a challenging project, one of the biggest advantages is providing an independent perspective.

“Because we come into difficult projects independently of the existing team, we do not have the history and baggage that often builds up over months. That allows us to step back, look objectively at the issues and focus on finding the best way forward.”

Matt’s approach is to understand the wider position before becoming immersed in every detail.

“I like to understand the problem at a high level initially, based on no more than one page of information rather than receiving a huge data dump on day one. This allows me to focus on the essential actions needed first, formulate a plan and then go into the detail afterwards.”

A key starting point is always the contract.

“Probably the most important thing for me to see when going into a project is the original contract or order governing the work. That sets out the base position from which the parties are expected to deliver the project. Surprisingly, this is not always easy to get hold of or readily available.”

Speed, communication and records matter

Once an issue has been identified, speed of response can have a significant impact on the eventual outcome.

“Problems have often been around for some time before we become involved. The priority is to understand what is happening, put a plan in place and start dealing with it quickly. That creates positive momentum and helps prevent the issue from getting worse.”

Communication is equally important. While formal correspondence and records are essential, direct conversations can often prevent positions becoming entrenched.

“Email is an important tool, but there is often no substitute for speaking directly with the other party. Many issues can be helped or solved through a conversation before they become a formal dispute.”

Strong records also remain one of the most valuable tools available to commercial teams.

“Good records are one of the most valuable things that can be maintained on a project. They help prevent disputes from developing, but they also provide the evidence needed to support a position if a dispute does arise.”

Three steps when a commercial issue emerges

For teams starting to see warning signs, Matt recommends three practical actions:

1. Do not ignore it and hope it goes away.

Small issues can quickly become significant commercial risks.

2. Take the time to understand the issue properly.

Establish the contractual, commercial and practical position.

3. Get the right support and put a plan in place.

Early advice can help protect both the project and relationships involved.

Construction disputes are rarely solved through blame. They are resolved through understanding the position, having the right conversations and taking action before problems escalate.

Through quantity surveying and commercial consultancy support GVE helps contractors, subcontractors and legal teams understand risk, strengthen their commercial position and resolve issues effectively — from contract reviews and NEC/JCT training through to commercial management, dispute avoidance and resolution.

If you are facing a commercial challenge or want to understand how early intervention could support your project, contact Matt directly: https://www.gvecsb.co.uk/contact