Contractors

Signs of Poor Project Management That Cause Contractors to Fail Part 2

In part one of our article, we discussed how a lack of middle and upper management and poorly written company policies and procedures are signs of poor project management. In this part, we will take about three more signs of poor project management: ongoing litigation, pending surety bond claims, and inadequate supervision.

Ongoing Litigation

As a construction contractor, you will confront risks every day. Workers can get injured on the job and your clients may want to sue you for myriad reasons including construction defects, breach of contract, shoddy workmanship, incomplete work, and the list goes on. It is normal to experience a dispute at times; however, if you are involved in ongoing litigation against you, this can be a red flag to potential clients. This is especially true of those who call for references to get a feel for your reputation. If you are dealing with threats of a lawsuit, always consult with a West Palm construction lawyer because protecting yourself and your business from liabilities should be priority one.

Pending Surety Bond Claims

Pending surety bond claims (performance bond or payment bond) on contracts are also a sign of poor management. When working on a public project, a surety backs the project with a surety bond to ensure that you complete it as agreed. If you fail to fulfill your obligations, a claim can be filed against you. Subcontractors or suppliers may file a payment bond against you if you fail to pay them for labor and supplies.

Bond claims can affect your reputation and should be avoided by doing some of the following:

  • Strictly following contract conditions
  • Clarifying everything before signing the contract
  • Paying attention to quality and deadlines
  • Only taking on work you can handle
  • Perform work diligently and never take shortcuts
  • Communicating with the owner and surety regularly

If a claim is determined to be valid, the surety company will give you the chance to satisfy the claim. If you don’t satisfy the claim, the surety bond will satisfy it but seek reimbursement from you.

Inadequate Supervision

Supervision on construction job sites plays a key role in achieving project success. Supervisors are typically tasked with planning and allocating work, decision-making, monitoring performance, maintaining safety compliance, and fostering an environment of teamwork. Additionally, those in management must model true leadership since they set the tone for employee behavior and work ethic. Poor supervision is guaranteed to heed the success of a project leading to increased workplace accidents, project delays, and more.

If you would like to speak with a West Palm construction attorney, please contact us at 954.210.8735, or submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

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