To Settle or Not Settle: Factors to Weigh and Practical Considerations

January 13, 2026 — Gerard J. Onorata - ConsensusDocs
Deciding to settle a construction dispute is often wrought with difficulty, requiring the decision maker to evaluate a number of factors. Nevertheless, there are no hard and fast rules that apply when advising a party whether or not they should settle a dispute. Yet the vast majority of construction disputes do settle before going to trial or arbitration. In fact, recent statistics show that approximately 95% of all civil cases, including construction disputes, settle before trial[1]. However, whether settlement is always the best choice depends on several factors to be discussed here. Merits of Your Case First and foremost are the merits of your claims and defenses against any claims that are asserted against you. Construction disputes are inherently fact sensitive, and the merits of a case are driven by the facts of the dispute. Simple breach of contract actions for balances of unpaid funds for the work and materials that have been provided and installed on a project make weighing the merits of the affirmative claim relatively simple. However, these types of “collection cases” stand in stark contrast to complex construction delay claims for equitable adjustment where there exist competing and numerous causes of the delays. In addition, there are complicated legal principles applicable to whether there is entitlement to compensation for the delay or simply an extension of time. Construction defect claims where technical engineering issues are involved also present a heightened level of complexity that may make such cases difficult to prove on the merits. Read the full story...
Reprinted courtesy of Gerard J. Onorata, Peckar & Abramson, P.C.
Mr. Onorata may be contacted at gonorata@pecklaw.com