Most contractors know that one of the biggest complications for their business isn’t related to finding or completing work, but rather litigation. Whether the customer wasn’t clear on what they wanted, or they are just looking to take advantage of a situation, the costs of litigation can cause major problems for any contractor or construction company.
To help you reduce the risks of being sued in your next job, here are ten tips:
- Review the Plans – Take the time to go over all of the plans and any specs related to the job with your client before you place your final bid. Making sure you are on the same page with the client can help to prevent many problems.
- Always have a Written Contract – No matter how nice the client seems or how small the job is, a written contract should be required for every job you perform.
- Get Extras in Writing – If the client wants any extras, include that in the contract. If they add them on after the contract is signed, write up an addendum to the contract and have both parties sign it.
- Document All Delays – All contractors know that there is always the potential for delays due to unforeseen circumstances. When this occurs, make sure to document it clearly.
- Document all Disputes – If you run into any sort of dispute or disagreement with the client, make sure to keep a detailed record of what the dispute was, and how it was resolved.
- Speak with a Construction Attorney – Ideally, you should have an attorney who specializes in construction law review all contracts.
- Keep Records – Keep detailed records of the exact work you performed, the supplies you purchased, and everything else that happens on each job.
- Give Specific Due Dates – Every job should have a set date by which you are committed to have each step done. This will help avoid miscommunications and other problems that can end in litigation.
- Document Payment Schedules – If you are allowing the client to make payments on a job, make sure it is clear when each payment is due, and what happens if the payment is late.
- Educate Employees – If you have employees or sub-contractors working on a job, make sure they know to document their work and any disputes they may have while on the job.
These ten tips will help reduce the chances of facing a lawsuit – but there is no substitute for having an experienced construction law attorney on your team. Please contact us today if you’d like to learn more!
