Among the unfortunate aspects of working in the construction industry is the time building companies spend bogged down in a courtroom. The building industry has the dubious distinction of being among the professions involved in litigation, either as defendant or plaintiff.
Veterans in the industry suggest different reasons for this, though the major cause involves miscommunication between two parties. Apart from miscommunication, there are other types of disputes involved in the construction sector; these include:
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Poor Management
While consistent and open communication is important to avoid building disputes, not handling that communication properly might bring its own set of issues.
For you to prevent this, you need to proactively investigate and review important communication and documentation. Project reporting should also be consistent to allow you to put systems in place before the construction tasks begin.
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Disagreement on Quality or Scope of Work
At times, homeowners might have unrealistic expectations of demanding extra services for free and materials beyond their budget. On the other hand, builders may sometimes deliver less work than what they promised or was written in the agreement, placing clients in a less desirable position.
In such a situation, an attorney familiar with building dispute resolution may help handle this issue. A good building dispute lawyer will go over the quality or scope of work outlined in the project, explore the legal options, and take you through the litigation process.
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Differing the Terms of the Site
Although construction bids depend on the assumption that site conditions and terms are reflected in the initial package, this is usually not the case.
The subsurface condition differences and other unexpected changes might be a big cause for disagreements in the construction site.
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Mistakes in the Claim Submission
Claims are among the major causes of building disputes. There are a lot of claim situations, which arise during construction procedure, including the extension of time, prolongation, and variation.
These claims should be submitted as outlined in the construction agreement. Poorly drafted claims without the right documents will always be a ground for building disputes.
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Conflicts over Delays and Timelines
Building projects normally take more time than what contractors anticipate. If a subcontractor or contractor doesn’t carry out projects by agreed-upon deadlines outlined in the agreement, this might lead to litigation.
Even though there is no specific deadline in a construction agreement, builders should complete projects quickly and efficiently.
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Personal Injuries
There are two major situations where personal injuries can intersect with building litigation. The first scenario is when an injury happens on the construction site, either involving bystanders or employees. In this scenario, you must prove that you followed all OSHA safety standards.
In the second situation, injuries involve existing construction elements after the project is complete. This might be something straightforward as trips, falls, and slips on walkways.
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Bad Behavior
Since agreements may not cater to every eventuality, wherever issues occur, both parties should have the interest to gain as much as they could.
Equally, both parties can have different opinions of the facts. At least one party might have an unreasonable expectation, affecting their capabilities to agree on one thing.
In a Nutshell!
While litigation is a popular issue in the construction sector, builders deal with a lot of risks, including financial, workplace, and safety problems.
Small contracting companies are also more prone to bankruptcy risks because of the costly disputes and claims. Litigation and legal claims are harmful to builders as they might negatively affect their careers, so it is important to know how you can handle these disputes.
