The purpose of this research was to expand the knowledge on dispute resolution strategies employed by the companies operating in construction industry with particular focus on SMEs on London high-end residential market. The research investigated the status-quo of dispute resolution on London high-end residential projects with the objective to establish what methods and practices are applied by the companies in conflicting situations and how their commercial position within the network affects their decisions on pursuing claims. The results of the study show clearly that in a dense environment of London high-end residential market disputes are rare despite the number of projects undertaken every year. This study concludes that in competitive and challenging environment of London high-end residential construction the network relations are valued significantly higher than definite and unequivocal determination of dispute. As the benefits of business negotiations in diffusing conflicts before they escalate are indispensable the results of this study suggest that more attention ought to be put on negotiation training for construction professionals.