Top Tips to Avoid Construction Disputes Before They Happen
Profitable construction projects are a matter of managing time, resources, and personnel. The more you can do in advance to manage a construction project, the likelier it is the project will be lucrative for all parties as that is why you became a builder, to make money.. One way to reduce costly expenses before they happen is to manage the risk of construction disputes. Incorporate the following tips into your project proposals, and you will reduce the chances of expensive construction disputes.
- Discuss the scope of a project in detail before beginning the project. Have a list of all requirements in writing. Make sure all parties are aware of due dates and financial penalties for late completion.
- Project delays for employee safety violations can be costly. Understand who is responsible for site safety and penalties for infractions.
- Develop a plan to address engineering requirements. Ensure all parties are aware of their responsibilities regarding required engineering authorizations. Make sure contracts stipulate legal penalties and fees for failure to have appropriate engineering signatures on construction milestones, i.e. well drilling and water quality.
- Have a plan in place to deal with dispute resolutions. An independent dispute panel or advisory board can help with conflict management. Make sure dispute panel members have both construction and legal backgrounds to ensure a quick resolution to conflicts.
Pay attention to these factors before beginning a construction project, and you will eliminate many construction disputes before they happen. Time is money in the construction business; anything you can do to reduce the amount of time spent on a job will save you money.
By following a simple checklist such as above you'll limit your exposure on needing to re-pay for supplies such as containment products if things go south.