Ankura’s Tim Hampson recently shared insights during a panel discussion at the Canadian Institute’s 18th Annual Conference on Navigating Risk in Construction Projects & Contracts, West, held in Calgary. The panel brought together leaders from across the owner, contractor, developer, and advisory landscape to examine how communication practices influence contract risk and overall project outcomes. The takeaways below reflect lessons that apply broadly across construction projects globally.
Construction projects are inherently complex, multidisciplinary, and high‑risk. While contracts are designed to allocate responsibility and manage uncertainty, disputes often arise not from the contract language itself, but from how teams communicate across the project lifecycle. From early planning through closeout, misalignment, unclear expectations, and delayed conversations can quietly compound risk long before formal claims ever emerge.
Drawing on real-world project experience, the panel discussion emphasized that effective communication is one of the most powerful and underutilized tools for managing contract risk and improving project outcomes. Thoughtful communication frameworks, paired with strong interpersonal skills, can prevent misunderstandings before they escalate into disputes.
The Risk Curve: When Influence Is Highest (and Most Often Missed)
Risk does not emerge evenly throughout a project. In the early phases, before the execution of construction, teams have the greatest ability to influence outcomes — even though only a small portion of total project costs have been incurred. These stages are often compressed under schedule pressure, leaving critical assumptions untested and communication frameworks underdeveloped.
Participants at the conference emphasized that the contract should be treated as the beginning of a relationship, not a shield. Early, intentional conversations about roles, responsibilities, decision‑making authority, information flow, and escalation pathways establish the foundation for trust. When those expectations are vague or undocumented, misunderstandings tend to surface later — when flexibility is limited and stakes are higher.
Precontract and Preconstruction: Setting the Tone for Shared Success
Many downstream disputes can be traced back to early‑stage communication failures. Ambiguous scope definition, incomplete risk allocation, and lack of cross‑functional input frequently resurface during construction as schedule impacts, cost overruns, and strained relationships.
Effective preconstruction communication is both structured and human. Clear, contract‑driven communication management plans that define cadence, formats, documentation standards, and escalation processes create consistency and predictability. At the same time, soft skills like active listening, curiosity, and respect are critical to building relationships that teams will later rely on when challenges arise.
Several panelists at the conference noted that misunderstandings — not malice — are at the root of many claims. Investing time early to align expectations, surface concerns, and understand stakeholder intent can significantly reduce the likelihood of adversarial behavior later in the project.
Early Design and Procurement: Surfacing Cracks Without Triggering Conflict
As projects move into design development and procurement, assumptions are tested and optimism gives way to reality. This is often where the first “cracks” appear — misaligned expectations between design intent and constructability, procurement surprises, budget pressure, or decision bottlenecks.
The panel emphasized the importance of surfacing issues early without triggering defensiveness. Leading with curiosity rather than conclusions, relying on data and visuals instead of emotion, and fostering psychological safety all help teams raise concerns constructively. Risk registers — when actively maintained and revisited — can serve as valuable communication tools by highlighting emerging risks before they escalate into formal disputes.
Momentum also matters. Delays in decision‑making or loss of alignment during this phase can create cascading impacts, forcing redesign, increasing costs, and eroding trust across the project team.
Construction Execution: Communication Under Peak Pressure
During construction, risk is no longer theoretical — it is realized in real time. Schedule pressure, cost visibility, and performance challenges test both contractual frameworks and personal relationships. Panelists agreed that trust‑based communication becomes most critical when stakes are highest.
Core principles emerged for effective communication during construction:
- Clear, direct, and respectful language
- Consistent cadence and predictable updates
- Transparency around uncertainty and emerging risks
- Emotional intelligence and psychological safety
Several speakers cautioned against overly legalistic messaging. While contract compliance remains essential, tone and timing are significant. Phrases that escalate tension — like citing the dispute clause in an initial delay notice — can undermine collaboration. Instead, fact‑based communication focused on impacts, options, and next steps helps preserve alignment while protecting contractual rights.
Closeout and Commissioning: Finishing Strong Amid Fatigue and Pressure
Closeout is often one of the most challenging phases of a project. Costs are fully realized, outstanding change orders remain unresolved, and teams are mentally and physically fatigued. Financing pressure, insurance considerations, inspections, and operational handover all converge at once.
Panelists noted that problems discovered late are not always the most damaging. Problems known earlier but poorly communicated can often cause greater harm. Maintaining disciplined communication through closeout — even as teams prepare to demobilize — is essential to protecting relationships and minimizing residual disputes.
Key Takeaways: Communication as a Risk Management Strategy
Across all phases of the project lifecycle, a consistent message emerged: Effective communication is not a soft skill — it is a strategic risk management tool. Contracts, schedules, and cost models provide structure, but communication ultimately determines whether issues are addressed collaboratively or allowed to escalate.
Simple habits — picking up the phone, clarifying intent, listening actively, and approaching challenges with empathy — can make a measurable difference in outcomes. When combined with structured communication frameworks and clear contractual expectations, these practices help teams manage risk proactively, preserve trust, and deliver projects more successfully.
Co-Panelists
Janelle Donohue | Calgary Airport Authority
Fergal Duff | Larkspur Projects Inc.
Maxim Olshevsky | Astra Group & Peoplefirst Developments
Rob Cowan | Synergy Projects Ltd.
© Copyright 2026. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC, its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
