Even the best-planned construction projects may encounter unexpected obstacles. From construction defects to payment disputes, disputes can quickly escalate into litigation.
When faced with a construction dispute, many clients want to pursue all claims and defenses available, which may prove expensive. Recovering costs requires showing how you have been injured through evidence such as attorney fees and expert witness expenses.
1. Don’t Take the Case to Court
There are a number of steps available to resolve contractor disputes short of litigation, beginning with trying to reach an amicable solution with both parties involved.
Miscommunication or misunderstanding may be easily rectified through conversation, mediation or arbitration – or many contracts contain clauses mandating their use before seeking legal recourse.
Construction disputes that require litigation include issues surrounding payment or lien rights. Here, a construction attorney can help clients utilize their lien rights so that they’re paid what’s owed them.
2. Hire an Attorney Early on
Legal problems that could have been avoided cost more to fix than hiring an attorney to prevent them in the first place. Furthermore, having a poor reputation within the construction law community could impede your participation on local, state, and national construction bar councils, future work opportunities, as well as personal finances.
Construction disputes often stem from miscommunication among project participants, disagreements over contractual obligations and delays in project completion. Consulting an attorney to assist individuals protect their immediate interests while working toward equitable resolutions of complex situations is key for protecting future relationships and finding equitable resolutions to disputes.
3. Don’t Be Afraid to Ask Questions
Construction disputes involve numerous factual issues (bids, change orders, delays, supplementations, liens, claims, default, pass-through claims and termination) that must be evaluated to provide counsel. Asking pertinent questions may help avoid full-scale dispute proceedings or position your client for success in reaching their desired result.
Many are afraid to ask questions due to fears they will reveal their ignorance, or fear the person answering will take advantage of them. Hart suggests these fears are overblown; that when sensitive inquiries are posed in a nonjudgmental manner, they can actually strengthen bonds and build trust between parties involved while making them more likely to share openly and candidly about themselves – being unpleasant is unlikely to go well in front of an arbitrator or judge!
4. Be Honest
Construction disputes require clients to be open and honest with one another. Any falsehood can quickly lead to distrust between parties involved and can create tension that threatens financial success and quality in projects; subcontractors could feel pressure from General Contractors to cut corners for financial reasons despite any short-term gains; violating ethical principles would likely have long-term repercussions that exceed any immediate gains.
Clients should remain open with one another regarding potential setbacks to a project. Although maintaining a positive outlook can help, it is equally important to address any problems as soon as they arise so they can be addressed before they worsen. It is essential to keep detailed records, both physical and digital, including pay applications, payment receipts, transfer records, revision plans/stipulations documents/punch lists etc to prevent mistrust from arising on construction sites.
5. Don’t Make Any Mistakes
It’s common practice in many fields of law for the parties involved to present every claim and defense as soon as they enter a case, particularly during arbitration or litigation proceedings. Unfortunately, in construction disputes this often results in inefficient, expensive and adversarial processes which only serve to compound existing problems while possibly leading to project failures.
Proactive planning through contract drafting and structured dispute resolution is crucial in order to avoid costly, emotionally draining lawsuits that threaten a project’s profitability. A construction lawyer can implement a negotiation approach based on principles outlined in “Getting to Yes,” which emphasizes collaboration and problem-solving to find mutually beneficial solutions. Disputes can also be resolved on-site with professional mediators helping address misunderstandings or differences of opinion.
