Construction disputes are costly, risky, and damaging to relationships. To avoid getting embroiled in a dispute, certain steps can be followed to help you and your team avoid disputes. In this first article, our Sarasota construction attorneys will provide the first three steps: plan upfront, identify risks early, and read the contract.
If you want to have organized, productive, and successful projects, then you can’t run them on luck. Projects are doomed to fail if not enough time is dedicated to understanding requirements, asking the right questions, and planning the work. This is especially true for large-scale construction projects. Significant upfront planning is one of the most critical elements of the project. Planning reduces uncertainty, increases understanding, and improves efficiency.
Identify Risks Early
Construction projects come with inherent risks that can be financial, operational, contractual, or environmental. Risks, whether internal or external, can have a serious impact on project costs, schedules, and performance. However, most risks can be mitigated with proper planning in advance of construction by holding brainstorming sessions with your team to identify potential risks and eliminate or control them.
Read the Contract
Never let the excitement of a new project cause you to rush in without reviewing and understanding the contract. Countless contractors have agreed to terms that led to onerous responsibilities, huge financial burdens, and terms that may severely diminish their rights. Read the entire contract from the fine print to the appendices to the attachments. Understand the indemnity clause, the additional insured clause, how change orders will be handled, the arbitration clause, the attorney’s fee clause, and so on. Before signing, be sure that everything you agree to is in writing and included in the contract.
There are more ways to lessen the likelihood of a dispute on your next project. In part two, our Sarasota construction lawyers will discuss negotiating a contract, perfecting the pre-construction planning process, and setting realistic schedules.
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.