This will substantially increase the costs. After you have experienced the joys of locating documents, answering interrogatories and facing cross examination in your deposition, the matter will be sent into an alternate dispute resolution program. This may be in the form of a mini trial, non-binding arbitration, or most often, mediation. If settlement is not achieved trial will commence, followed by appeals and mounting attorney's fees. It is not a cost-effective way to settle a dispute.
Disputes seem to be a natural part of the construction process.
However, very little gets accomplished when you are involved in resolving a dispute. The loss of your productive time is your greatest cost. Try to resolve any problems as early as possible.