Conflict avoidance as an economic principle

There are a wide variety of reasons why the state courts are unable to provide those factors which are vital for practice-oriented legal handling of larger-scale construction projects: Dispute avoidance, timely de-escalation and, if necessary, prompt decisions on differences of opinion during construction are the cornerstones of a smooth construction process and thus simultaneously an important basis for the monetary success of the building project in question. On the other hand, the traditionally preferred principle in Germany of relying on courts for a posteriori decisions on disputes which are rooted in the legal and factual complexity of the construction process has given rise to unhealthy structures over decades which are rather counterproductive. This prolongs and accumulates differences of opinion during the construction process, whose subsequent processing costs all the parties involved unnecessary time, a great deal of money and, more often than not, overextends the courts. Under these circumstances, the provision of ordered construction conflict management has proven to be a key strategic component for ensuring economically sensible development and performance of every larger-scale construction and plant engineering project. It includes the establishment of functional internal organisational and decision-making structures as well as the contractual implementation of suitable dispute avoidance and settlement procedures for larger-scale construction and plant engineering projects.

Prof. Stefan Leupertz serves as an adjudicator, a conciliator, an arbitrator and a legal expert for all types of legal disputes relating to national and international construction and plant engineering projects. In addition, if required, he is available as an advisor right from the project development stage for the individual design and contractual inclusion of conflict resolution proceedings (ADR proceedings) during construction.