Construction companies face litigation because of simple project management mistakes.
Poor planning, changes to plans, and low quality will lead to construction disputes. Disputes will delay a project and increase construction costs.
A construction team should be thorough with every step of the building process. When you take your time to deliver a service, the end product is pristine.
Successful construction companies have methods to maintain their reputation and trust with customers. These tips will help you stay on schedule and avoid construction disputes.
The following guide explores a few common disputes and how to resolve them.
Common Causes of Construction Disputes
Projects going through a construction dispute will have a delayed project completion date. Waiting another month or year to resolve your problem can increase the stress on all parties.
Your team followed the project scope and fulfilled contractual obligations. So, where was the communication breakdown?
Coordination Between Teams
Construction projects need many trade professionals on one project. But only the specialist team conducting the installation should be on the work site.
There needs to be a schedule to outline when a specialist starts their part of the project.
Issues arise when teams fall behind on their work schedule. The delay conflicts with upcoming install dates, and work has to be rescheduled.
Delays
Missing the construction project deadline is a typical issue construction companies encounter. Factors like poor communication and time management cause delays.
FIDIC contracts require that you give enough notice about delays. Otherwise, you give up your right to extend the project completion date.
A construction delay can create disharmony between all involved parties. Be proactive about communicating any foreseen schedule conflicts to the client.
Quality and Code Violations
Clients may file a construction dispute when the end product is not what they intended. They may feel the project does not meet the proper specifications.
Or maybe the project met the client’s expectations but failed city inspections. Projects must pass building codes and local laws to be considered a legal structure.
The lack of quality may also be due to a contractor’s limited skill and knowledge of their trade. And new contractors can be a liability without the proper training to carry out the task.
Amendments
Construction companies can make the mistake of miscalculating the cost of a project. This error causes clients to incur additional expenses.
Some factors that increase construction costs are site cleanup, leveling, and project amendments.
Construction teams should be aware of scope creep due to clients’ add-ons. Clients may feel entitled to make amendments to the project specifications without notice. And they expect you to complete the project by the deadline and hold you accountable for delays.
Changes need to be done to the local code, and all parties should agree with the proposed variations.
Worksite Conditions
Contractors may initiate construction disputes due to worksite conditions. Contractors may go on strike to protest working conditions and demand higher pay. Team members should be paid fairly for their work to avoid backlash and loss of staff.
Contaminated worksites and hazardous materials create dangerous work environments for workers. Properly train and certify contractors to work on hazardous worksites. The site could receive a visit from Occupational Health and Safety Administration OSHA.
OSHA checks for safe working conditions and that workers onsite have proper certification. Fines get issued to projects if safety precautions are not implemented on the work site.
Preventing and Resolving Construction Disputes
Anticipating the worst-case scenario can save your project from a construction delay. Proper training helps construction teams avoid common delays. And teams will learn best practices on how to resolve issues that arise.
Preventative Measures
Let us discuss the importance of having a risk management plan. This plan outlines solutions for unexpected events. If you run into delays or changes in scope, this plan will list the steps to rectify the situation.
Also, make sure that change work orders get approved before doing any variations to the scope of work. The project team leader needs to update the project files with the amended project. There should be a team meeting updating all project teams on the change in project scope.
Keep teams in the loop about scope variations to reduce the chances of further delays. Project management software will help to keep project documents organized and on schedule.
Documents should also include a materials list that specifies your tools for construction. Too often a construction crew shows up at a worksite, and they do not have the right tools to do the job. This oversight is a simple mistake but can cause major delays.
Construction Dispute Resolution Processes
See if you and the client can resolve the matter without filing construction claims. There could be a simple resolution depending on the situation.
Work into the contract alternative completion dates to account for unforeseen delays. If a problem should arise, these dates give you and the client the time to formulate a plan and overcome the delay.
The client may want to escalate matters and take legal action. Construction claim services will guide you through the litigation process.
Construction Disputes
Construction disputes can lead to lengthy legal battles. Even the most mindful contractors can have construction disputes arise with their clients.
Consult with a construction delay expert witness to examine the exact cause of the delay. If there is a reasonable cause for litigation, they will help you with the next steps.
