Common Causes of Construction Disputes

From constructing an entirely new building from scratch to putting on a simple addition, a construction project can quickly become complex. This is why it’s vital to have construction contracts in place so that everyone from the building owner to the subcontractors knows what to expect.

However, even with the proper paperwork, construction disputes are still far too common. It’s helpful to get an experienced Oakland construction contract dispute lawyer on your side for prompt dispute resolution. Before that happens, though, it’s good to be aware of common causes of construction disputes so you can try to prevent them ahead of time.

It may seem like overkill to have extremely detailed contract terms, but when something goes awry, you’ll be glad it’s there. The construction industry is rife with complications that can come from a litany of sources, sometimes beyond the control of both property owners and the construction team.

Here are some of the most common causes of construction disputes to get ahead of.

This can definitely be one of the more contentious disputes to come out of the construction process. Issues can come up from non-payment, late payment, or an issue over the completed work. A property owner may not be happy over what’s been completed so far and doesn’t feel as though they have to pay.

It’s vital for the documentation to have clear guidelines on invoicing and the payment schedule. Typically, part of the cost is due before any work is done with the remainder due once it’s complete. Good communication is needed so that if any party has an issue with what’s been done, resolution can be prompt.

Timelines for drafting contracts can go on for a while. It’s not ideal when all parties simply want to begin. Unfortunately, this can lead to vague terminology that puts into doubt what each party is responsible for. This really comes in handy for change orders when an amendment needs to be added to a pre-existing contract once construction begins. It may delay the start date but by ensuring everything is accounted for, you reduce the risk of delays once the project begins.

Numerous factors can lead to a change in project scope. This can occur due to regulatory modifications from a governmental body or unforeseen site conditions, like a change in soil condition from when it was first inspected. It may require additional costs or cause a delay in the project schedule. Prompt communication from the stakeholders ensures any problems are handled right away.

Having skilled architects, design consultants, and engineers helps reduce the risk of construction disputes once the ground gets broken. Trying to rush the process can lead to incomplete drawings or inaccurate specifications. Trying to fix this once the project has started can lead to costly delays as well as arguments over who shares the cost of fixing it.

A contractor abandoning a project is one thing, but oftentimes, delays are the result of something that’s no one’s fault, in particular. For example, bad weather will require delays in construction. This may cause issues with the construction team if they were supposed to begin yet another project shortly after yours.

Supply chain disruptions and improper resource allocation also necessitate language in the contract that clearly states how such matters will be handled and who has the responsibility of paying for them.

A contract should clearly define what materials the team is allowed to use. This requires intensive research from the property owner so that they understand what materials are ideal for the area in question. Plus, in the event the team does something different, it’s critical to have something in writing to show that the construction professionals are the ones who broke the terms.

The parties may draft the construction contract weeks or even months before the team makes it to the worksite. Supply chain shortages can cause an increase in the materials specified in the contract, which in turn, causes the whole project to go up. The paperwork should clearly state how such matters will be handled.

Before starting construction, property owners may oversee a tendering process where various bidders come out to the site and offer quotes. The property owner can then decide from there who they want to hire and who they believe will lead to the most successful project possible.

However, the site can change between when the bid was submitted and when work starts. Soil and subsurface conditions can change, potentially making the job harder and requiring a higher cost of labor.

Those who own real estate deserve to get what they pay for with any and all construction work. If you’re unsatisfied with the work being done or notice the team isn’t abiding by the previously established timeline, you have a right to file a dispute.

Construction disputes are costly and time-consuming endeavors. You may need to spend even more money resolving them in addition to whatever money is required to fix the issue at hand. A lot of people need to get involved in defining contractual obligations so that everyone knows what’s required of them.

Therefore, before signing on the dotted line, it’s a good idea to have the following in all of your contracts:

You don’t have to go through a construction contract dispute alone. Estavillo Law Group has contract dispute lawyers waiting to guide you through the process. From payment disputes to poor management, we’ve handled many disputes related to real estate and are well-equipped to get your project back on track.