- Misallocation of funds
- Project abandonment
- Improper licensure
- Faulty permitting
Now, we will continue to discuss this important topic while focusing on a handful of other allegations that can be brought against construction professionals. When a disgruntled partner makes a complaint against your contracting business, it can lead to more than a bad relationship. You could lose your license, or worse, end up on the wrong side of a lawsuit. Fortunately, there are ways that construction professionals can avoid such a situation, namely, partnering with a Nashville contractor attorney or investing in an affordable subscription plan from an experienced, nationwide construction law firm like Cotney Construction Law.
5. Theft or Fraud
Contractors can engage in fraudulent activity in a number of ways. Requiring a full payment up front, providing partial written contracts, failing to obtain the correct permitting, making false change orders, misquoting projects, or selling extra materials for a reduced price are some common examples of how contractors may attempt to defraud owners. Some contractors may not even realize that certain actions they are taking qualify as fraud, so it’s always a good idea to maintain a close partnership with a Nashville contractor attorney that can help them keep everything above board.
6. Negligent Building Design, Supervision, and Inspections
Contractors can’t afford to allow negligence to creep into any aspect of their business. Negligence is one of the most common complaints against contractors, especially relating to building design, supervision, and inspections. Contractors must be fully dedicated to these tasks, otherwise they risk losing their license, the confidence of their clients, and their ability to generate profits. Contractors should assign licensed and trusted professionals to handle these tasks. After all, nobody wants their project to be undermined by a lazy inspection.
7. Lack of Oversight
Contractors must be constantly aware of everything taking place on their active project sites, especially the health and safety of their employees. Not all complaints are going to originate from disgruntled owners. If you fail to provide the proper personal protective equipment (PPE) or adequate training for your employees, you’re increasing their risk of succumbing to injury. This can lead to workers’ compensation claims and increased insurance rates. It may also cause members of your team to question your ability to lead.
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.