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Construction conflicts cost money, resources, construction delays, and worst of all, your time.
The key to reducing the chances of construction conflicts arising is to account for the possibility at the very beginning of the legal relationship.
This refers to when the construction contracts are drafted. When contracts do not address how to handle disputes when they arise then they are not fully doing their job. Contracts are in place to protect your business so that you can focus on the construction rather than the legal problems.
How do you draft a strong construction contract and what are some key elements it should possess?
Hire an experienced commercial litigation attorney. This attorney can draft a construction contract that is in your best interest. Are you doing business with a company that already has an agreement and they want you to sign theirs? Before you do that, your commercial litigation attorney should review the contract. It may contain clauses or unrealistic conditions that can hurt your contracting business should a conflict arise. Your attorney can try to negotiate better terms for you.
Never count of using an attorney that represents the other party, they will have a conflict of interest. Always have an attorney that only represents you in the matter. Your attorney can review the clauses that address conflict resolution. There are numerous ways a conflict can be resolved, choosing one that works best for you can save time, money, and reduce stress.
The levels of dispute resolution include:
Negotiation clause
Both parties try to negotiate a satisfactory solution between themselves.
Mediation clause
Both parties agree to a neutral third party mediator who will assist both parties with coming to a resolution
Arbitration clause
Both parties agree to a neutral third party arbitrator who will review the facts and evidence of the case and come to a potentially legally binding decision on the matter.
Litigation clause
If no resolution can be reached with the other methods, the parties will go to trial. The court will hear both sides of the case, evidence, and witnesses, and then make a decision.
Although litigation is the lengthiest and costliest of the options, it may be necessary if a contractor and a property owner cannot come to a resolution.
For more information about resolving construction conflicts, send us a message.
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