(Newswire.net — January 8, 2023) — Construction disputes are nothing new. And problems can morph into contentious legal action.
The construction sector in the U.S. was worth approximately $1.6 trillion in 2021. And Statista says the overall value of construction in the U.S. climbed by 8% between 2020 and last year.
But while the research firm predicts higher numbers this year, that doesn’t mean that everything is always amicable between builders and clients. If the parties can’t work things out and resolve issues like disputed changes in the scope of projects, lawsuits can ensue.
What follows is a look at three of the main reasons for construction disputes — and how to avoid them.
1. Project Scope Change
One of the biggest causes of conflicts leading to lawsuits is a change in the scope of a project. It happens when, after the builder and the client agree on what the project will entail, the client insists on substantial changes. Of course, the builder might be able to accommodate minor tweaks. But if the requested changes are outside the initial agreement and require additional payment from the client, problems could erupt.
Some clients might be hesitant to fork over more money, while the construction company might insist that the scope change will result in much more work than was previously agreed upon.
How can such problems be avoided? Ensure that the contract thoroughly details the agreed-upon deliverable. If the contract clearly states what the project entails, it will be apparent that a change in scope will violate the original contract that both parties signed off on.
2. Incorrect Design
If both parties are on the same page, this issue shouldn’t arise. Problems pertaining to incorrect design occur when the project isn’t completed to the client’s specifications or expectations. This scenario can lead to acrimonious legal action, with both sides blaming the other. But it’s a situation that can be avoided if things are done professionally. The client and the builder should agree upon every aspect of the project before anything gets underway. There should be a clear plan with nothing left to chance or interpretation. If both parties work together at every stage of the project, then no problems associated with incorrect design should materialize.
3. Workmanship Deficiencies
A construction defect can pertain to the actual construction process like poor design, workmanship, or materials. Legal action could be afoot when the client believes that the deliverable is inadequate. This is especially the case if there are allegations of workmanship deficiencies. Construction defects are far from uncommon. But most of them are minor. But severe defects that could put people or the property itself at risk could lead to legal action.
One way this problem can be avoided is by focusing on getting the right contractors and sub-contractors, sourcing the best materials, and ensuring that quality checks are performed at every stage of the project. Again, minor defects happen. But the builder should catch and correct major issues to avoid drawn-out and costly legal action afterward. It’s also essential to keep on top of what’s being done. So, supervision and accountability are necessary.
Construction defect lawsuits are very complex and tedious. It’s best to avoid situations where a client has grounds to launch such a lawsuit.
These are some of the most common causes of construction disputes — plus how to steer clear of them. Many issues can be avoided if there’s open two-way communication between the principal parties. When both sides understand what needs to be done and how it will be done, there will be fewer instances of misunderstandings that erupt and lead to a courtroom.