Litigation is the process of engaging in or contesting legal action in court as a means of resolving a dispute. The court is able to enforce or determine one party's rights or obligations.
Litigation is not uncommon in the construction industry because of its adversarial nature and the tendency for disputes to arise. A combination of environmental and behavioural factors can lead to construction disputes. Projects are usually long-term transactions with high uncertainty and complexity, and it is impossible to resolve every detail and foresee every contingency at the outset. The basic factors that drive the development of construction disputes are uncertainty, contractual problems, and behaviour.
In 2013, an NBS survey, the National Construction Contracts and Law Survey, found that 30% of firms had been involved in at least one dispute in the previous 12 months.