Disputes in the construction industry are very common. Solving a dispute is much easier than preventing it in the first place. However, most investors and contractors don’t seem to realize this until they find themselves in the midst of such a problem. When a dispute happens, it causes the project to be delayed. In fact, some projects end up being aborted simply because the contractor and the property owner could not agree on certain issues. The most common causes of disputes is amending the initial design of the project, failing to get all the necessary paperwork and poor communication between the involved parties. What follows next is a fierce legal battle that puts both the contractor and the investor on the losing end. Here is a list of tips that can guide you towards preventing disputes in construction projects
1. Put It in Writing
Having a gentleman’s agreement is the worst mistake you could ever make. Since putting up a house or a facility is an expensive affair, you risk losing huge amounts of money in case the structure doesn’t meet your needs. You should actually draft an agreement that states what each party will do and the action that should be taken against any party that fails to comply with the laid out rules. The advantage of having a binding agreement is that it can be referred to during construction dispute resolution process. Before the agreement is signed by all the parties, you should ensure that the document has been reviewed by a lawyer. This helps in safeguarding the interests of all parties.
2. Discuss Potential Risks in Advance
Before a construction project commences, it’s important for the building contractor and the property owner to discuss the potential risks. This helps in ensuring that all the parties understand what they are getting themselves into before putting pen on paper. In fact, downplaying the impact that a risk might have on the project is a huge mistake. You should actually avoid bending the rules no matter the circumstance because it can land you in trouble later after the project is complete. In addition to that, you should get all the necessary documents from government agencies. Such documents include building permits and approval of the project plan. With these documents, the authorities will always be on your case to ensure that the project stops before its completed.
3. Regular Communication is Key
Disputes usually happen when the parties involved in the project fail to maintain constant communication. The problem with most contractors and investors is that they only communicate at the initial stage of the project and expect everything to go as planned. All the parties should communicate at every stage of the project. This helps in addressing the challenges that arise in the course of administering the project. If there is a change that that needs to be made, all the parties should be consulted before the decision is implemented.