Despite the best efforts of construction professionals, disputes happen and claims are filed for many reasons. Contractual parties file claims because of unforeseen circumstances, project delays, defects, performance, warranties, and more. Undoubtedly, this can take up a lot of time and cost money, but professionals need a plan for handling claims so they will not derail the entire project. The following are ways to go about managing claims during a construction project.
1. Draft a Strong Contract
Although drafting the contract occurs before a project commences, it’s worth mentioning simply because contracts are the source of a lot of conflicts. In a court of law, the contract carries the weight. In short, never rely on verbal agreements and always put everything in writing. Get the expertise of an Orlando contractor attorney to review your legal documents to ensure you are covered in the event of a dispute.
2. Negotiate to Avoid Litigation
When it comes to claims, contractors are wise to de-escalate the situation from turning into a time-consuming litigation. Our Orlando construction attorneys recommend contractors gather facts in support of their case, put together a claim document, think from the opposing party’s standpoint, and to find a skilled negotiator to negotiate on their behalf.
3. Respond to Claims Immediately
Although the entire project is on a strict timeline, it’s important to respond to claims promptly to resolve them. Delaying claim resolution gives off the impression that the contractor is waiving the claims.
4. Stay Organized
Contractors must be wise to keep their records in order because these very records serve as a history of the entire operation. Implementing an organized record system will help to support reasons for costs changes, unforeseen conditions, or schedule delays. If a dispute were to emerge down the line, these records can validate a contractor’s position.
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.