10 Commandments for Resolving Construction Disputes
Below, are the Ten Commandments that can help you avoid problems during construction projects and resolve those that do arise.
-
1. Have Clear Contracts
The best way to avoid construction problems is to have clear contracts that set out the rights and responsibilities of both parties. Carefully read through the contracts and negotiate favorable terms in case a problem does arise.
-
2. Anticipate Problems
It is common for some type of problem to arise during a construction project, whether that means that weather delays the work, materials cost more than expected, or an unexpected problem with the property arises. Be sure that you include provisions in your contract that address these potential issues.
-
3. Structure Payments
Some project managers make the mistake of pre-paying for work or paying too much for the amount of work that has been completed. Funds that are advanced should not exceed the value of work that has been completed.
-
4. Secure the Work
Many contractors choose to secure their work through the issuance of a mechanic’s lien. To protect your rights, you will need to carefully follow the filling deadlines and notice requirements.
-
5. Formalize Contract Changes
If there are add-ons or change orders, be sure that you get these contract changes in writing. Your contract probably requires changes to be in writing, so be sure you follow this directive.
-
6. Resolve Problems Early On
If problems do arise, address them early on. Letting them fester can cause the parties to solidify their positions against each other and make it more difficult to resolve the problem.
-
7. Pick the Right Mediator
If you have a problem that cannot easily be resolved through direct communication or negotiation, mediation is an effective way to resolve disputes that arise during construction projects that allow the parties to maintain the contract and work together to resolve the problem. Selecting the right mediator is pivotal to the successful resolution of your case. Neil Robertson has extensive experience mediating construction and commercial matters and can help you resolve your dispute in an amicable manner.
-
8. Participate in Mediation in Good Faith
Once you are at mediation, it is important that you participate in the process in good faith to get the full value of this process.
-
9. Keep an Open Mind
One of the biggest benefits of mediation is the ability of the parties to create terms of an agreement that may not otherwise be available through litigation. For example, the parties may agree to modify the contract, agree to future business together or agree to use a particular subcontractor as a way to resolve the conflict. Keep an open mind and be flexible to get the most out of the mediation process.
-
10. Document Your Agreement
After you successfully mediate your dispute, be sure that you get your full agreement in writing. You will walk out of mediation with a customized agreement.
Neil Robertson
www.robertsonmediationflorida.com