As a construction company, legal disputes with clients (or others) are among the biggest problems that can be faced. In addition to being potentially costly, they can also result in extensive down-time and even reputational issues that could cause issues for your company for years. Learning how to avoid legal disputes is an important skill that all construction company owners or managers need to learn. The following tips can help to reduce the risk of a legal issue on any job.
Never Rely on Oral Contracts
When starting a new job all the parties involved are going to be excited about the work and the project itself. At this point, everyone is typically on the same page, so it might not seem necessary to take the time to make a full legal contract (especially if it is a fairly small job). The reality is, however, that oral contracts often lead to misunderstandings and conflicts that may end up in court. No matter how large or small a job, a written contract is always needed.
Don’t Start Work Without a Strong Contract
Another mistake that some construction companies make is starting a job while the final details of a contract are still being worked out. No matter how certain you are that you will be able to come to an agreement with the other parties, nobody should pick up a single hammer until the full contract is written and signed.
Discuss Potential Problems Right Away
Construction projects are often very large and complex, and it is impossible to predict every issue that you may experience. When you run into a problem with the job, don’t try to hide it. Instead, bring it to the attention of your client and let them know what is being done to get it resolved. Setting clear expectations and keeping them informed will help to maintain trust, so they are not tempted to bring their concerns to court.
Always Seek Clarification
Open communication is essential to a successful construction job. Whenever a client wants something specific done on a project, make sure that the details of their request are understood properly. It is much better to seek additional clarification up front before the work (and related costs) are done.
Don’t Handle Legal Work on Your Own
It would be foolish for an attorney to attempt to build their own office building without a construction company that knows what they are doing. It is equally unwise for a construction company to try to handle their legal work without the help of an experienced attorney. Contact The Law Office of Ray Garcia, P.A. [Link to CONTACT US page] to write or review contracts and address legal disputes properly, so you can focus on more important aspects of your business.
Law Office of Ray Garcia, P.A.
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