A nasty construction dispute can imperil the reputation of your business. A common theme in many of these matters is that the disputes could have been easily avoided with proper planning and oversight.
Any construction project is going to have many moving parts. From suppliers to subcontractors, there are plenty of opportunities for miscommunications to arise that create hindrances to progress.
That’s why it’s important to keep all players in the loop. This is done via communication — and having a solid paper trail to back your version of the events can prove your point in arbitration or court, should the matter fail to resolve otherwise.
This is yet another reason why it is so vital to making sure that your contracts are airtight and offer a clear path to resolution when a dispute arises due to compliance fails, delays and cost overruns.
Below are some common causes for construction disputes:
- Insurance coverage (and lack thereof). If an incident occurs and a party files a claim that’s denied by the insurance company, it can lead to litigation.
- Scope creep. This is frequently a problem when clients press contractors to “just add one more (fill in the blank).” While contractors should aim to please, these requests often belie all the underlying changes that must occur in order to make it happen.
A single dispute can grind the whole project to a halt, costing you hundreds of thousands of dollars and exposing your company to legal action.
You should always make sure that your Fort Lauderdale business law mediation/arbitration is part of your communication loop. They can often nip an off-kilter situation in the bud and resolve it satisfactorily before it ever rises to the level of a formal dispute among parties.