Effective communication is critical for the prevention of construction-related lawsuits. Clarifying client expectations can prevent defect litigation that can be costly to a construction business. Establishing a realistic project timeline can also limit the likelihood of a delay-related lawsuit.
Construction delays can affect project costs and can impose significant secondary expenses on the client. The lost revenue from being unable to open a business facility or the additional cost of maintaining an alternative dwelling arrangement for longer than anticipated can create major financial pressure for property owners. Effective communication can help limit the likelihood of a delay leading to litigation.
Contracts can temper expectations
Quoting a specific timeline while pitching to a prospective client is one thing, but committing to a strict timeline in a contract is another matter entirely. Construction companies often need to include language clarifying that delays may arise and limiting the business’s liability when delays are outside of their control. Contracts can also establish guidelines for how the business should communicate about the delay with the property owner.
Written notice may limit client frustration
If those overseeing construction projects communicate immediately when there are indicators of a delay on the horizon, they can potentially help their clients minimize the losses they sustain by allowing them to plan for a longer overall timeline. Providing written notice that explains the reason for the delay and the estimated impact the delay may have can allow the client to address the changing timeline as soon as possible.
Appropriate contract terms and thorough project oversight can reduce the risk of litigation triggered by construction delays. Working with an attorney when drafting construction contracts, reviewing existing agreements or responding to a demand from a client can help mitigate the financial exposure of the construction business.