One of the biggest issues that general contractors and construction companies face is that clients change their minds. For instance, maybe you run a business building new homes. A client may originally agree on the plans but constantly come back with different changes to the design of the home or...

Addressing the risk of delays into a construction contract is a strategic approach to mitigate potential issues and better ensure project success. Delays in construction can arise from various factors such as adverse weather conditions, supply chain disruptions, labor shortages or unexpected site...

Poor communication can lead to the loss of thousands or millions of dollars in the construction industry. If you fail to communicate effectively with your client, you may deal with rework, safety hazards and so on. Thus, it's crucial to prioritize communication. Here are three tips to help you im...

For contractors, understanding the intricacies of construction contracts is crucial, particularly when it comes to the possibility of breaking such agreements. While every effort should be made to fulfill contractual obligations, circumstances can arise where breaking a contract becomes a concern...

In the construction industry, managing cash flow effectively is undeniably important, as margins are often thin when a project is underway. Ensuring timely payment for work completed is a crucial part of this process.  Unfortunately, delayed payments are a common challenge faced by contractors. N...

Construction disputes can arise between businesses and subcontractors or clients and construction firms. These disputes can delay the completion of a project or impact the profit margins for the company involved. Taking a construction dispute all the way to trial could mean waiting months to reso...

Some construction defects are very clearly mistakes that were made by the construction crew or the result of deficiencies in the quality of the workmanship. For instance, a homeowner may claim that electrical systems were installed improperly so that they don't work, that plumbing systems are lea...

When a construction company is sued for an alleged defect, one of the first steps is determining what type of defect it actually is. There are many different examples, and it's important for all parties to know exactly what is being alleged while considering potential liability. Construction defe...

A construction project is one of the most complex endeavors you can undertake. Sometimes, unexpected obstacles and circumstances can have a significant impact on the project's overall financial plan.  While some construction cost overruns are unavoidable, it helps to note that some contributing f...

The construction industry can be fruitful, with new developments and renovations happening all the time. That being said, running a construction firm is by no means easy. You have to speculate to accumulate and your business relies on being paid on time for the tasks you complete. Unfortunately, ...

Scope creep refers to the uncontrolled expansion or deviation of a construction project's scope beyond the originally agreed-upon boundaries and deliverables. It occurs when changes, additions or modifications to the project scope are introduced without proper evaluation, documentation or approva...

As a contractor, you understand the importance of doing things according to an agreement. It is part and parcel of providing your clients with quality services. Further,  sticking to what is agreed upon eliminates the chances of disputes. However, a client might ask you to perform a task that was...

As a contractor, always protecting yourself and your business is necessary. Unfortunately, working in this industry means you face unique challenges, including legal issues related to your projects. The best way to avoid legal issues is by avoiding the mistakes that cause them. Here, you can lear...

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 ...

One of the many tools you have in your arsenal as a business owner in the construction industry to collect payment that's owed you is something called a “dunning letter.” Many people who use these don't know them by that term, which is derived from a centuries-old word for demanding payment of a ...

Reputation is everything when you perform construction work professionally. Your clients help you reach new people who may need similar work done on their homes. They can also leave reviews for you online that could entice future clients or send them running straight to your competitors. Proper e...

As a contractor, part of your job is to partner with subcontractors. You may manage the job overall, or you may do most of the work and just bring in specialists as needed. Either way, you could end up bringing on subcontractors who do electrical work, plumbing, drywall or some other task on the ...

You have a successful construction company and business is thriving. Usually, you carry out work to a high standard and customers are happy to pay what seems to be a fair amount. Unfortunately, you are feeling nervous about your latest client. You have your suspicions that they are going to refus...

Construction defects aren't uncommon. Unfortunately, they occur in more projects in and around New York than many people realize. However, when they hear about construction defects, they think they are all created equal; however, this isn't the case. The defect depends on the failure mechanism. T...

When you provide a prospective client with an estimate for the work they would like done on their property, you base the figure you provide on estimated supply costs and your current staffing arrangements. If circumstances change drastically, you may have no choice but to amend your prior estimat...

You are a home improvement general contractor who takes pride in your work. You usually only work with the best subcontractors, but you decided to try someone different. You now wish you hadn't because of the poor work quality, and the homeowner is unhappy with you. What are your options in this ...

Your company may take on remodeling work or new constructions that require a unique skill your company isn't equipped with. Companies make use of subcontractors to make up for a specific skill that may be lacking from their staff.  Subcontractors are hired to attend to specific tasks or services ...

As the owner of a construction company, one of the best things that you can do to try to avoid disputes is to make sure that you communicate clearly every step of the way. It is often true that legal disputes stem from some sort of misunderstanding or miscommunication earlier in the process. For ...

As a construction company, your bottom line can be greatly affected when you can't get paid on time. You work hard to complete jobs, but when the payments don't come through, you could be left without the profits you expected. There are some ways to prevent debts going unpaid. You have options li...

For years, arbitration clauses have been popular inclusions in business contracts. Companies realized that requiring arbitration from their suppliers or clients would limit their chances of going to civil court.  However, mandatory binding arbitration clauses have become the subject of public scr...