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Construction Dispute Resolution

Is arbitration binding in Georgia?

Yes, arbitration awards are binding and final. Georgian courts generally enforce them quickly under the New York Convention.

What is the advantage of mediation?

Mediation is cheaper, faster, and preserves business relationships. It is confidential, unlike court proceedings which are public.

Can I sue a foreign contractor in Georgian courts?

Yes, if the contract performance or the property is in Georgia. However, enforcing the judgment abroad might require additional procedures.

How long does a construction lawsuit take?

A complex construction case in Georgian courts can take 1-3 years (including appeals). Arbitration is usually faster (6-12 months).

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3 min

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Construction Dispute Resolution: Managing Conflict for Results

The construction industry is inherently contentious. Clash of interests between the client, contractor, architect, and engineer is inevitable in large-scale projects. Construction Dispute Resolution covers a wide range of mechanisms — from negotiation to arbitration and litigation. Construction disputes are characterized by technical complexity: a lawyer must understand not only the law but also engineering details, drawings, and construction standards.

Mismanagement of a dispute can lead to project suspension, freezing of bank accounts, and company bankruptcy. In addition to traditional courts, Dispute Adjudication Boards (DAB/DRB) and mediation are actively used in modern construction to speed up the process. Legal.ge offers access to specialized lawyers experienced in resolving complex engineering-legal disputes who can protect your investment.

What Does Dispute Resolution Service Cover?

Specialists on Legal.ge offer strategic support:

  • Negotiation and Mediation: Resolving conflicts at an early stage to maintain business relationships and keep the project moving.
  • Dispute Adjudication Board (DAB): Establishing a special board under FIDIC contracts that makes operational decisions during construction.
  • Arbitration: Resolving disputes in arbitration (local or international), which is faster and more technically competent than general courts.
  • Court Litigation: Representation in common courts, applying interim measures (injunctions/attachments), and claiming damages.
  • Technical Expertise: Engaging engineering and construction experts to gather evidence.

Common Scenarios and Real-World Examples

Disputes often concern:

  • Payment Disputes: The client refuses to pay the final installment, citing poor quality. The contractor claims the work meets standards.
  • Scope Increase: Rocky soil was found during excavation, increasing costs. Parties disagree on who should bear this cost.
  • Calling on Bonds: The client demanded the Performance Bond amount from the bank. The contractor tries to stop this via court injunction.

Georgian Legal Framework

Dispute resolution is based on:

Civil Procedure Code: Defines rules for litigation in court. Due to construction specifics, forensic expertise is often appointed.

Law on Arbitration: Georgia is an arbitration-friendly jurisdiction. Arbitral awards are final and enforcement is streamlined.

Law on Mediation: Allows disputes to be resolved confidentially and quickly with the help of a mediator.

Step-by-Step Service Process

Working with a lawyer on Legal.ge involves:

  1. Case Analysis: Studying the contract and factual circumstances.
  2. Forum Selection: Court vs. Arbitration (if the contract allows).
  3. Strategy: Developing offensive (lawsuit) or defensive positions.
  4. Representation: Defending interests during the proceedings.

Why Choose Legal.ge?

A construction dispute is not an ordinary court case. It requires specific knowledge. Legal.ge gives you access to lawyers with in-depth knowledge of Construction Law who can translate complex technical details into language understandable to a judge. Resolve disputes effectively.

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Specialists for this service

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