The Pitfalls of Construction Contract Disputes

For a construction worker, their contract is the most important document in a project. Not only does it define the type of work needed, but also their compensation. It defines the legalities and warranties of both the owner and contractor. That being said, legal disputes over contracts often occur and companies should handle them swiftly and proactively while managing associated costs.

The Cost of Legal Disputes

Handling a legal dispute is not easy nor is it cheap. Control of the entire legal process becomes more expensive as the case passes on from the project team to the legal team, to the arbitrator, judge, etc. By also having to deal with the fees of hiring a construction claims expert, the process can be financially draining. Contract disputes can liquidate internal companies’ resources. Closing out the case is not an easy task unless it is settled on a quick note.

The Legal Process

Over time, the circumstances of the case can change. Initially, the project team, with all the wealth of knowledge of the legal matter, presents their case in a strong fashion. When attorneys intervene, they go through a period where they need to review records, paperwork and interviews to essentially catch up. Once a thorough analysis has occurred and more details have been revealed, their level of knowledge surpasses that of the project team therefore impacting the case to the point of neutrality. The case is then handed to a trier of fact which becomes fair game to strong arguments.

Turnaround Services

There are times that construction projects are held off due to disputes or planning issues. This can cost the company a large amount of money for each day that it is delayed. Construction turnaround services are often used to help resume work in a timely manner. Financial burdens build up by holding off on a project.

Bio: Lyle Charles, founder of Lyle Charles Consulting, has been involved with the construction industry in a variety of roles. With experience in managing and owning subcontracting companies, construction consulting and even business advising will assure you that you get quality. Call today for an expert opinion.