Construction projects can be challenging, with many parties involved, unforeseen circumstances, and changes to timescales, avoiding disputes can be difficult. In this post, we provide our top tips for how to set your construction project up for success. If you are already involved in a dispute and need specialist legal advice, you can get in touch with our team today.
While construction disputes can be challenging, there are many steps you can take to minimise the risk. Here are the steps we would recommend.
While many lawyers provide contract drafting as a service, we would always advise working with a solicitor with specific experience of the construction sector. Construction contracts can be complicated, and when disputes arise, having the experience and expertise of a lawyer who understands the process for resolving such disputes is essential.
We are experienced in resolving disputes arising out of projects of all shapes and sizes and have particular expertise in dealing with large scale schemes where a dispute has arisen between multiple parties on a commercial or residential development.
Contracts for construction can be agreed orally or in writing, but to give your project the best chance of running smoothly, we would always recommend that you opt for a written contract. It is also essential that the contract is drafted carefully with no ambiguous terms or wording. Provisions you will want to pay special attention to are those concerning delays and right to compensation. Your solicitor will explain all of these to you clearly.
Even with a well-drafted contract, unforeseen problems can arise which can lead to disputes. However, you can control potential difficulties by monitoring the project closely from the outset. It is essential that you make clear to project managers and their crew what the correct processes and procedures are. You may wish to create a project handbook outlining the change order approval process, as well as any other agreed terms. You should also document additional costs.
If you do not have an accurate schedule in place, it can be difficult to understand the impact of any delays, which could affect your capacity to claim compensation. The schedule should be clear, accurate and accepted by all parties at the very beginning of the project. Having a clear schedule in place can also help you to identify and visualise any potential delays and address them at an early stage. Identifying delays can help to avoid disputes. By taking action to mitigate loss and agree on a way forward.
If you are a construction company owner, by the time any problems are fed back to you, it could be too late to avoid a dispute. As a result, an important way to minimise the risk of a dispute is to ensure your site managers or project managers are trained to recognise issues likely to cause a dispute. You can also train them to act quickly to resolve such disputes or to feedback matters that you may wish to deal with yourself.
Before you begin the project, it can be useful to sit down with all parties involved and identify any potential risks or delays. Discuss these matters openly and candidly and prepare all parties for the project and ensure that they know what they are getting into. We would recommend that you never try to hide or downplay a potential problem or risk as it could lead to difficulties and disputes later in the process.
It is essential that you keep in regular communication with all parties involved in the project. This can help everyone to understand the challenges faced by those working on the project. Regular communication can also reduce friction and encourage collaborative working, which can help to avoid disputes.
At IMD our team of construction dispute solicitors are well known in the industry for their proactive and commercially focused advice which is targeted at helping you achieve the best possible outcome. To discuss your requirements, please contact Marcin Durlak on 0330 107 0107.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
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