A construction project can help establish your reputation in the market, lead to profitability and create a strong working relationship with the potential for repeat business. But the construction industry is notorious for having numerous conflicts, many giving rise to delay, lost income and damage to reputation. You can’t afford to get embroiled in one of these conflicts and lose your case, which is why you need to be aware of common issues that may come up and how to avoid them. That way you’ll protect your interests as fully as possible, allowing you to focus on expanding your business and successfully completing construction projects.
A lot can go wrong during a construction project. If you don’t get a handle on it, then you could find yourself facing an enormous amount of contention and the threat of litigation. Here are some of the most common issues that you might see and how you could avoid them:
- Issues with nonpayment: You deserve to be paid for the work that’s been performed. If you’re not, then you’ll be justified in taking legal action. If the party who needs to pay fails to make good on their contractual agreement, then you might be warranted in securing a mechanics lien, that way the property is encumbered and can’t be sold without you being paid first. To avoid nonpayment, be sure to vet your client from the beginning to ensure that they can pay for the work to be performed. Also, send automated payment reminders and be prepared to describe how a mechanics lien works so that you can use it as leverage to secure payment.
- Breach of contractual terms: Construction contracts should be detailed. As a result, though, a client might fail to abide by some of the terms. This can lead to delay and other issues that affect your bottom line and your ability to complete the project. To avoid breach, make sure that the terms of the contract are easily understandable, and remedies are clearly demarcated. Be sure that your subcontractors are subject to clear terms, too.
- Delays: Delays are almost inevitable in the construction industry. This can cause a significant amount of stress, and if your contract includes a finish date, then a delay could subject you to penalties. To try to avoid this from happening, try to build contingencies into your contract so that you have a little flexibility for unexpected events.
- Issues regarding quality: Clients often complain about the quality of their construction project. This can cause a whole host of issues. If correct, poor construction quality can create safety issues, which in turn can devastate your reputation. Correcting quality deficiencies can be expensive, too, thereby negating your profitability. To minimize the risk here, be sure to scrutinize blueprints, building materials and the skill level of your laborers.
If so, you need to know how to protect your interests. This requires knowledge of the law and an understanding of how the law applies to your unique set of circumstances. That’s why you can’t delay in figuring out the best way to tackle your construction dispute. If you do, then you could end up facing bad outcomes that you otherwise could’ve avoided. To learn more about how to navigate construction-related litigation, please continue to read our website and our other posts on our blog.