Written by Sue Dyer, Founder, IPI   

In 2025, construction professionals face a clear but pressing threat: the soaring cost of claims and disputes. From skyrocketing insurance premiums to multi-million-dollar legal verdicts, the financial fallout from conflict is growing at an alarming pace. According to the latest industry data, the average value of a construction dispute in North America has surged past $42 million, and it's still climbing. 

Behind these numbers are real consequences: project delays, exhausted teams, reputational damage, and budgets blown apart. Claims related to defects, delays, and contract disputes are hitting more frequently, driven by supply chain disruptions, labor shortages, economic shifts, and a growing legal phenomenon called "social inflation," where jury awards have become increasingly generous. 

If you're a project leader, you may be thinking: "We don't plan for conflict, so why does it keep derailing us?" The truth is, conflict can start anytime and anywhere. It starts in the field, in the ways we form teams, manage problems, and communicate under stress. 

The Root of the Problem: Adversarial Culture 

Many projects still operate under an "us vs. them" mentality. Designers are pitted against contractors, contractors against owners, field against office. These power imbalances and siloed perspectives create tension long before formal disputes arise. In this environment, the moment something goes wrong, everyone starts protecting their own turf. Trust erodes. Collaboration stalls. And the seeds of costly conflict are sown. I saw it just today in a project that is under suspension, and yet because of miscommunication the contractor started working on the job without the owner knowing it. Trust immediately eroded. Everyone is now ready for a fight. It can happen that fast.  

The irony? Every stakeholder on a project typically shares the same fundamental interests: stay on budget, stay on schedule, deliver quality, and keep the site safe. But when fear and blame drive the culture, those shared goals are overshadowed by misalignment and mistrust. 

A Better Way: Collaborative Partnering 

There is a proven antidote to this culture of conflict: Collaborative Partnering (CP). Used successfully on thousands of projects, CP brings all parties together to define shared goals, align expectations, and establish accountability mechanisms before tensions boil over. It includes: 

• Partnering workshops and kickoff sessions 

• Dispute prevention and resolution frameworks 

• Regular facilitated check-ins to stay aligned 

• A performance scorecard to monitor progress 

Projects that implement CP have shown significantly higher success rates—with fewer claims, smoother delivery, and greater profitability for all parties involved. 

Take Action: Ten Ways to Prevent Conflict from Turning Into Claims 

Here is a practical checklist your team can use to prevent costly disputes: 

1. Implement Collaborative Partnering early in project formation. 
2. Train your project leaders through the IPI Project Leader Certification program to establish high-trust norms and resolve issues proactively. 
3. Neutralize power imbalances by setting shared ground rules and ensuring all voices are heard. 
4. Use a structured kickoff session to align goals and identify potential hot spots. 
5. Develop a shared problem-solving approach so all parties co-create solutions, rather than competing for control. 
6. Track project health through real-time trust check-ins and performance scorecards. 
7. Create a learning environment where teams share lessons and continuously improve.
8. Establish clear dispute prevention protocols and revisit them regularly. 
9. Design contracts that support collaboration, not just risk transfer. 
10. Celebrate collaborative wins to reinforce trust and accountability. 

Your Call to Action 

We can't control tariffs, labor shortages, or extreme weather, but we can control how we work together. If you want to protect your projects, your people, and your profits, it starts with culture. 

Collaborative Partnering and the IPI Project Leader Certification give you the tools to build that culture. Don’t wait for a sticky claim (or potential claim) to teach your team a painful lesson. Get ahead of conflict, and set your project up for success. 

Want to equip your team with the tools to prevent claims before they start? 

Explore Collaborative Partnering and register your team for the IPI Project Leader Certification Training today.