Nothing can put quite as costly of a stop to a construction project as a construction dispute. Whether you are a property owner, investor or contractor, understanding the most common causes of construction disputes may help you draft a more comprehensive and effective dispute resolution plan, and may also save you valuable time and money.
One of the most common causes of construction disputes is omissions and errors found in the construction contract. In fact, a construction consulting firm found that contract errors and omissions were actually the leading cause of construction disputes in the year 2014. By working with a team of experienced legal professionals, you may be able to better identify errors and omissions in a contract and resolve them before they cause major issues.
Following close behind contract omissions and errors is the problem of employees, subcontractors and contractors failing to comply. Certain contractual obligations are meant to be followed by all parties involved in the construction process. When one party fails to comply with these contractual obligations, a dispute may arise. Just as having an effective contract is important, making sure all those involved have a comprehensive understanding of their obligations is equally important.
Assuming the construction contract is effective and well understood by all involved, then administering the contract should not be an issue. Unfortunately, failing to administer a construction contract properly is also a common cause of construction disputes. When contracts are not administered properly, projects tend to run over budget and are finished late. These issues will often lead to unsubstantiated claims and contract disputes.
While there are many common causes for construction disputes, they can typically all be avoided by working with an experienced team of business and commercial law attorneys. With their help, property owners, investors and contractors can rest assured that their contract is both comprehensive and effective.