hree Ways to Decrease Your Risk of Litigation in the Construction Sector

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Constructing a Contract

One of the main challenges in construction, of course, is that projects are usually extended over a long period of time, and during that time, a multitude of unforeseen events can occur. Most litigation problems arise when one party breaches a contract, so your contract terms are incredibly important.

As you look toward constructing your contract, there are a few things you can do at the outset to decrease your risk of litigation when working in this challenging sector.

1. Good planning should include realistic and flexible schedules.
As a professional in your field of expertise, you know how long things should take if everything goes according to plan. You also know that unplanned, unscheduled, and unforeseen events are always popping up on construction sites. It’s important to build flexibility into your schedule from the outset to mitigate these kinds of delays. Always budget more time than you think is necessary. Remember the old adage: under-promise and over-deliver.

2. Communicate throughout the contract.
Nothing breeds contempt more than silence. If you’re on schedule, communicate that to your client. If you’re delayed, communicate that to your client. If something has gone horribly wrong, drive over to your client’s office and communicate the problem face to face. Don’t force your client to have to use their imagination wondering how things are going, it’s always better to know for sure.

3. Always be properly insured.
The truth remains that, no matter how well you plan, there will always be the possibility of something going horribly wrong. Natural disaster, worldwide pandemic, financial crisis, or something as simple as the client deciding they don’t like your work after you’ve put in two years on the design you both agreed to with a handshake over drinks. Protect yourself, your business, and your family by being properly insured.

Construction can be a profitable and rewarding sector. Don’t let a failure to plan well, a tendency toward under-communication, or an insurance miscalculation destroy your business.

If you’d like some assistance constructing a fair contract, we’d love to help you!

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