According to a study by Trading Economics, Massachusetts reached the highest ever number of construction projects in the state in July 2023. While most of these projects would be considered costly, breaches in construction contracts can make costs skyrocket. The best way to manage the risk of construction disputes is not to have them in the first place. Paying adequate attention to certain details when it comes to drafting and implementing construction contracts can be a great way to keep you out of the litigation process and on the path to completing your project.
Don’t complicate your construction contract
One way to dodge costly construction litigation is to keep your contract as simple and easy to understand as possible. Be sure to define timelines, responsibilities and financial planning. Any confusion in these areas can cause work to not be completed on time or to be incorrectly executed. Establishing clear parameters will help everyone to understand their part in the transaction, and will keep all involved parties on track.
Know your contract
Construction contracts should never be skimmed over. Instead, all parties should make every effort to diligently understand the contract and their role in it. The contract is the cornerstone of the construction process and should be understood fully.
It is also likely the contract might need to be changed in order to manage unforeseen circumstances. Having a great understanding of the parameters of the contract will help you to pivot when situations like this arise.
Create a risk management plan
A risk management plan helps to identify hazards that could be a detriment to your project and cause unnecessary construction legal issues. Make a plan to identify these risks and avoid them at all costs.
By implementing good communication strategies and employing talented project managers, you will hopefully not be plagued with construction litigation issues. However, if you ever find yourself the defendant in such litigation, remember to keep good records regarding your contract and any breaches that may have occurred. Good records could keep you out of court and protect your financial investment.