Before pursuing a construction claim, be brutally honest with yourself and ascertain whether filing makes business sense. In some cases it may end up costing you more than the award is worth.

Ask yourself the following questions:

1. Did your company suffer significant financial damage? Not every dispute results in dollars being lost.
   
   
2. If you win the claim, can you collect damages? If you did a credit check before you began work, you may already know the answer to this question. If the owner can’t pay damages, seriously consider why you are pursuing the claim. Of course, if you’re simply seeking vindication for a perceived wrong and the money is immaterial, that’s another matter.
   
   
3. To what extent did problems on location exacerbate the situation? One certainty at a construction site is that there will be problems, many of which you can settle amicably. But trying to exact revenge won’t do either you or the owner any good. Recognize that there is probably enough blame to go around.  Consider conditions in the field and relative costs. If it’s a financial wash for both sides, why go through the aggravation of filing a claim?
   
   
4. Who’s responsible for whom on the project? Owners must answer for the performance of designers, architects, and inspectors. Contractors must answer for the performance of subcontractors, superintendents, and engineers. Assigning liability is one of the first steps in filing a claim.
   
   
5. Is there enough documentation to back up a claim? Without proper documentation, your chances of prevailing diminish considerably.  Keep files on the project’s history with names, dates, estimates, drawings, and meeting minutes. Change orders with backup data should be noted, filed, and tracked. Make sure delays, changes in work conditions, lost time, and weather conditions are written down. Keep accurate daily logs, time and material counts, and work reports. If you have sufficient documentation, you’ll be in a good position either to pursue a claim or defend against one.
   
   
   Alternatives to Litigation
   There are less drastic ways to settle disputes. Before going to court, consider these options:
   
   
   • Concede defeat.Look at the situation as a third party would. In some cases, it may make sense to admit you don’t have a case, and move on.
     
     
   • Negotiation.During face-to-face meetings, share your positions and come to a mutual agreement.
     
     
   • Mediation.Make your case to a neutral third party, who will attempt to broker an acceptable settlement.
     
     
   • Arbitration.Both parties agree to abide by an arbitrator’s decision. This option usually works best if the problem is so complex it can’t be solved any other way.
   
   
   If all else fails, then go to court. But remember that the longer the dispute drags on, the more time it will take to resolve, the more people it will involve, and the more money it will cost.