A construction project is a huge and complex undertaking. From the property owner to the contractor, suppliers and subcontractors – everyone involved must work as a team to ensure the project’s success.
But with so many moving parts, it is not uncommon for construction projects to run into some sort of trouble. It is for this reason that construction projects have contracts. With the right contract, you can address construction disputes and focus on the main thing – completing the assignment at hand. But how do construction contract disputes happen?
Here are three leading causes of construction contract disputes:
1. Omissions and errors
Failing to include crucial elements in the construction contract can lead to disputes down the road. Sometimes, you may fail to notice the error or omission until a supplier or the contractor unwittingly makes a mistake that ends up costing the project.
An omission can also leave room for a costly misinterpretation or miscommunication. This underpins the importance of working with an expert to avoid omissions that might lead to disputes.
2. Non-compliance with the contract
It is not uncommon for a contractor or a subcontractor to simply overlook the terms and conditions of the contract. Whether this is occasioned by a mistake, a misunderstanding or a disagreement, non-compliance with the terms of the contract can lead to serious (and costly) disputes.
3. Changes in site conditions
A change in site condition – or differing site conditions – can happen when the contractor runs into an unanticipated obstacle during the construction project. This can be buried debris, excessive rock or hazardous waste that can either slow down or raise the project’s cost.
Protecting your interests
A properly-written contract is crucial for the success of any construction project. Learning more about the basics of drafting a construction contract can help you avoid costly disputes down the road.