How would you settle a business dispute in a project?

Agreed with Mr.Fouad's answer, and i want to add 

there are three basic ways to resolve construction claims: litigation, arbitration, and mediation. Each method of dispute resolution has its pros and cons, and they are not mutually exclusive. Understanding the nature of these methods is critical to deciding which method to use in any given situation.

Invite the parties together, you are the spokesleader, set the rules, First round , everybody saus what he wants, without interference of the other, also a second round to react on the first round. Then after these two rounds let them say what the problems (still) are.  then make a discussion round, be the discussion leader, but don't pick sides!9 out10 is solved this way

If these conflicts related to work and I was the project manager here I have full powers and I possess strength and firmness to impose my control and I will punish negligent and transgressors of the law, but first of all I have to gather all parties to the dialogue table and listened attentively to them and try to tear down barriers that separate them and give everyone his right

It should be based on the project benefits side and need to refer to the project charter and signed contracts for giving the right ethical decision.

Thank you ,Mr Alex ,,, Judgment in resolving any dispute between the parties to the contract is the general conditions that have been drafting the contract terms on the basis of the specifications agreed on the implementation under any arbitration between them from a third party delegated by them going as noted above, unless otherwise agreed, if referred the dispute to the courts The separation between them is based on the general terms and their contract

Agree with answer of En.fouad and En.Jafar

It all depends what kind of dispute it is ... is it an international or a small business contract ?

Always keep in mind the other side is more willing to settle if the see a win win situation and it will not effect the working relationship in the project.

If it is a minor problem like a vendor is not paid ... find out why it happened, try to work with the vendor to resolve the issue ... get documents adjusted if needed and get the vendor paid.

In an Industrial project ... the architectural department had to be notified that the drawings from the contractor where out of the tolerated limit ... therefore a stamp on the drawing been placed that it was rejected and the contractor had to fix the problem.

Now if it involves international businesses special legal considerations can impact existing and future business ... arbitration or rather a settlement out of court may be the better way. 

Great Question ... Great Answers.

Thanks for all.

Thank you Mr.Alex , I agree with ENG. Fuad, Eng. Gaa'far, Eng.Elke and Eng.Yaagop.

Communication and planning ahead go a very long way in avoiding disputes and also determine the proper procedure in addressing disputes that do arise.  this should all have been pre-determined.  A contract should outline the dispute resolution process, whether by a bargaining group or committee, mediation, arbitration or (hopefully as the very last step) resorting to court processes.  You can avoid disputes by establishing strict parameters up front, and by setting objective criteria that must be used to resolve disputes that do arise.

Thanks for the invitation...

In my opinion every business or projects face disputes and conflicts which can only be resolved based on findings, research and strategic planning which will benefit the business or project in question either for a short period of time or long term future plan...

Disputes occur due to lack of communication, understanding or misinterpretations regarding both parties. In order for both parties to agree they need to reach a mutual agreement which should've been drawn up in a contract as stated by other colleagues prior to implementing any steps. A contract will clear any misconceptions and outline the duties and responsibilities one must adhere to as well as clear misunderstandings of who has what responsibility. Consultation is a method of settling disputes e.g presenting your planning strategy or ideas to a more senior person could direct you in the right path and as to what the benefits are or outcome. Overall however listening and discussing to one another would prevent any disputes escalating and if both parties are in their right minds would probably agree mutually putting their differences aside for the sake of their positions and success of the business.