Completing construction projects can be a very rewarding career. Not only is there an opportunity for profit whenever completing a large-scale construction project, but there’s something to be said for seeing the physical results of hard work.
Whether a company or professional specializes in remodeling residential facilities or erecting commercial premises, the goal is to produce something that is valuable and useful for clients while generating revenue for the services offered.
Unfortunately, the profit margins for a project can shrink or outright disappear when the client takes issue with the finished product. In construction defect lawsuits, companies may have to provide financial compensation to clients or may need to redo work.
How can businesses minimize the risk of clients initiating lawsuits after the completion of a project?
With appropriate contract inclusions
The written agreement between the construction company or professional and the client is the first line of defense in the event of a dispute. Ensuring that the contract includes very clear terms regarding the client’s expectations and the proposed timeline for the project can be of the utmost importance. Many disputes arise because clients have undisclosed expectations for the project.
Other contract inclusions can also help limit the impact of a dispute with a client. For example, many contracts include alternative dispute resolution clauses. Companies may require that clients reach out to the firm directly and attempt to settle the disagreement before filing a lawsuit.
Even clauses advising clients of the possibility of delays and unpredictable expenses can help prevent lawsuits after the completion of a project.
With appropriate project oversight
It is common practice to use outside service providers, including contractors and other companies, to handle different elements of a large construction project. Those outside parties might use the wrong materials or perform mediocre work that does not align with the expectations of the client.
Even in-house employees can sometimes do worse work on one project than they have previously provided in other cases. Construction firms need to be very careful about overseeing the project from beginning to end to ensure that all parties conform to not just the building code but also the expectations of the client.
Assistance when negotiating business contracts, developing a business plan and responding to client complaints can be beneficial for those in the construction sector. Proactive efforts to protect a company can reduce the likelihood of construction litigation and the damage it could do to the organization.
