6 Common Types of Conflict in Construction & How to Resolve Them

Published: December 1, 2024by Jeremy Pollack

In the construction industry, where projects are complex and timelines are tight, conflict can be a frequent and often unavoidable part of the work environment. With multiple parties involved—from contractors and subcontractors to project managers, architects, and clients—differing opinions and competing priorities can quickly escalate.

For construction companies, addressing these conflicts head-on is crucial to meet deadlines and ensure that construction projects run smoothly. Whether it’s issues over resource allocation, poor communication, or contractual disputes, unresolved conflicts can have a ripple effect, impacting not only the construction schedule but also the company’s reputation and bottom line.

In this article, we will explore the types of conflicts in the construction industry, the potential impact of unresolved conflict, and the significant benefits of early conflict detection and resolution. By implementing proven conflict management strategies, construction companies can foster a more cooperative, productive work environment and prevent minor disagreements from escalating into costly setbacks.

6 Types of Conflict in Construction (Resolution Pathways for Each)

In construction, conflicts arise from various sources due to the complexity and high-stakes nature of the projects. Below are some primary causes of conflict in construction, with practical resolution pathways to address each.

1. Resource Allocation

One of the most common issues in construction is the uneven allocation of resources such as labor, equipment, and materials. If one team perceives that another has received preferential treatment regarding resources, tensions can mount. For instance, delays in equipment delivery can stall one team’s work, leading to frustration and a sense of inequity.

The best approach to resolving conflicts over resource allocation is transparency. Regular team meetings to discuss resource distribution can ensure that all parties involved understand how and why decisions are made. Project managers should also maintain an open communication policy, allowing any team member to voice concerns and propose adjustments to keep the construction project on the same page.

2. Communication Breakdowns

On a construction site, poor communication can be a frequent contributor to construction disputes. Misunderstandings about project changes, material specifications, or timelines can lead to frustration and mistakes that escalate quickly.

Establishing clear communication channels from the outset is key. Using communication tools that keep everyone in the loop can help reduce misunderstandings. Teams should set up regular check-ins and use tools like daily logs to document changes and updates.

Active listening helps enhance communication among construction teams and reduces the risk of minor issues turning into major disputes.

3. Contractual Disputes

Contractual disputes are common in construction due to the legal and financial complexities involved. Disagreements can arise over contract terms, including construction schedules, payment schedules, and responsibilities, especially when one party has a different interpretation of the contract.

The best way to manage contractual conflicts is to consult with legal experts and ensure contracts are clear and comprehensive from the beginning. Including specific terms on change orders, payment schedules, and responsibilities reduces the chance of misunderstandings later.

At Pollack Peacebuilding Systems, we provide mediation services to clarify contract disputes, guiding parties toward a mutually beneficial solution.

4. Disagreements as to Course of Action

Differing opinions on how to approach construction projects can lead to tension among team members, especially if there is no consensus on tasks or priorities. For example, general contractors and subcontractors may have different views on scheduling or task sequences, which can create delays and friction.

A third-party mediator can be highly effective in these situations, helping teams evaluate all options and select the best solution. It is recommended that a neutral third party be involved to ensure that each team member feels heard, preventing personal feelings from obstructing practical decision-making.

5. Safety Protocol Compliance

Compliance with safety standards is critical in construction, yet team members may occasionally disagree on specific practices or protocols. If opposing parties fail to follow established safety procedures, it can jeopardize the entire project.

Setting strict safety protocols at the beginning of a project and enforcing these protocols consistently can prevent disputes. Regular safety meetings should be conducted, and ongoing training should be provided to ensure that every team member understands and respects safety rules.

Consistent reinforcement keeps conflicting parties aligned and reduces the potential for further complications.

6. Unforeseen Site Conditions

Surprises during the construction phase, such as discovering poor soil conditions or unexpected utility lines, can cause frustration among teams and lead to delays. These site issues often bring conflicting parties to a standoff on how best to proceed, risking costly delays if no resolution is reached.

Anticipating and planning for possible site issues is essential. Performing thorough pre-project investigations and setting aside contingency funds can minimize conflicts related to construction site conditions. When unforeseen conditions arise, a collaborative approach is needed to ensure each opposing party contributes to finding a viable solution.

Photo of Conflict in Construction

The Impact of Unresolved Conflict

Leaving conflicts unaddressed on a construction site can significantly disrupt a project and erode team morale.

Delays

Project delays are a direct consequence of unresolved disputes. When teams cannot agree on task sequences or resources are unavailable due to poor planning, the entire project timeline is pushed back.

Cost Overruns

Increased costs are another common effect of lingering issues. Each conflict left unresolved on a construction project can add thousands of dollars to the budget. These cost overruns often stem from delays, legal fees, or rushed work, each contributing to higher-than-expected expenses.

Decreased Morale Among Construction Crews

When warring parties are left to their own devices without resolution, morale can decline, particularly among crew members directly affected by the conflict. Team members may feel unsupported or undervalued, leading to stress and, ultimately, decreased productivity.

Safety Risks

Unresolved conflicts often divert attention from critical tasks, causing lapses in safety compliance. A distracted worker is more prone to accidents, especially in high-risk environments. Resolving disputes quickly keeps everyone focused on maintaining a safe work environment.

Reputation Damage

Repeated conflicts, especially those that lead to project delays or cost overruns, can harm a company’s reputation. Clients and partners may hesitate to work with a firm known for unresolved disputes, which can limit future project opportunities.

Benefits of Early Conflict Detection and Resolution

Identifying and addressing conflicts early on can create a more efficient, positive work environment on construction sites.

Improved Project Timelines and Budget Adherence

Resolving conflicts at their onset helps keep projects within their original timeline and budget, reducing the likelihood of cost overruns.

Enhanced Team Relationships and Better Work Environments

Managing conflicts constructively fosters a good working relationship among teams. When opposing parties feel heard and valued, they are more likely to collaborate effectively, leading to a more productive and harmonious worksite.

Greater Accountability

Early conflict detection promotes accountability, as team members understand the consequences of their actions. Resolving conflicts quickly ensures workers feel responsible for their part in maintaining team harmony.

Lower Legal Risks

Addressing conflicts before they escalate reduces the risk of legal complications, which can be both time-consuming and costly. Proactive conflict management in the construction industry saves companies from the financial strain of potential lawsuits.

Pollack Peacebuilding Systems’ Solutions

At Pollack Peacebuilding Systems, we specialize in resolving and preventing construction disputes. Our goal is to ensure that construction projects stay on track and teams maintain a positive work environment.

Here is how we approach conflict resolution.

Mediation Sessions for Conflicting Parties

We provide professional mediation services to bring together opposing parties in a neutral setting, facilitating open discussions that lead to a quick and amicable resolution. Our mediators are skilled in defusing tension and ensuring all voices are heard.

Workshops and Training on Conflict Resolution Skills for Construction Teams

We offer customized workshops that equip construction teams with essential skills, such as actively listening and constructively managing differing opinions. Our training includes role-playing exercises as well as team-building activities to prepare teams for real-world scenarios and improve communication and cooperation on-site.

Continuous Support and Follow-Up Assessments Post-Intervention

Our support extends beyond the initial resolution. Pollack Peacebuilding Systems conducts follow-up assessments to address any underlying issues and ensure lingering issues do not re-emerge. This ongoing support fosters long-term collaboration and helps maintain a stable work environment.

Contact Pollack Peacebuilding Systems to Learn More

For construction companies seeking lasting solutions to construction disputes, Pollack Peacebuilding Systems provides expert mediation and proactive conflict management services. 

Contact us today to learn how we can support your project management needs by resolving conflicts effectively. Our approach helps your project team achieve a harmonious and productive workplace.

Avatar for Jeremy Pollack

Jeremy Pollack

Dr. Jeremy Pollack is a social psychologist and conflict resolution consultant focusing on the psychology, social dynamics, and peacebuilding methodologies of interpersonal and intergroup conflicts. He is the founder of Pollack Peacebuilding Systems, an internationally renowned workplace conflict resolution consulting firm. Learn more about Dr. Pollack here!