In this article
As a legal professional specialising in construction work, I hear all kinds of stories and resolve disputes ranging from unpaid bills to negligence. Through these cases, I’ve picked up on the trends that cause things to go wrong, giving me an insight into how to avoid these kinds of problems in the first place.
Construction disputes are typically time-consuming and very expensive, even if you are not the party in the wrong.
In this blog, I outline simple and practical steps that all parties can implement to help avoid construction disputes and keep your projects on track.
Looking to cut to the chase? If you need a solicitor to help you resolve your construction dispute, just call us on 0203 007 5500, or submit a contact form.
1. Invest time in researching the professionals
This tip applies to people hiring contractors and contractors hiring subcontractors. It pays dividends to undertake some due diligence on a trader or company before agreeing to a potentially costly contract.
Here are some of the key things to look into when researching construction professionals:
- Check if the trader or company has insurance. You can ask them for a copy. If they say they have it but won’t share any details, you have a reason for concern. At the least, they should provide you with the maximum payout so you can consider whether it covers the value of the contract. A million-pound project backed with a policy that pays out no more than £100,000 is risky.
- If it is a company, check Companies House for information. The latest available accounts may be from over a year ago, but they indicate the value of the assets owned by the business. It’s common for contractors to keep limited funds in a company so it can be wound up if an expensive dispute presents itself. Mirroring the above, a million-pound project with a company with less than £5,000 in capital and reserves is risky, especially if there is no insurance.
- Research whether the profession has a regulatory body or best practice industry standard. Many professions have bodies determining best practices. Membership to these bodies generally requires adherence to these practices or the member can face expulsion or sanctions, so they are typically a good indicator of quality. Some well-known bodies are RICs (for surveyors), RIBA (for architects), CIOB and FMB (both for contractors).
As a contractor, you can help put clients’ and project managers’ minds at rest and build a good reputation for your company if you apply these research points.
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2. Implement the correct paperwork – including a construction contract
Proper documentation is crucial in construction projects.
You can start a project with a Letter of Intent, outlining the scope of the work and people’s roles. This is ideal as a stopgap while the formal contract is written.
At the heart of a construction project is a well-drafted construction contract. This legal document sets out the rights, responsibilities, and expectations of all parties involved in the project.
A handshake agreement isn’t enough in construction. Proper paperwork protects all parties and provides a clear roadmap for the project. If you’re unsure about drafting these documents, a construction solicitor can ensure everything is in order before work begins.
3. Open communication
One of the most common complaints I hear from my clients is how their builder responds to communications with huge delays or doesn’t respond at all.
Although this is extremely frustrating for clients, it’s also risky for the contractor. By not responding to clients or providing progress updates in a reasonable timeframe, contractors could breach the contract. Even without an express (written) term in the contract, implied terms on the time taken and the quality of service provided can be incorporated into the contract by legislation in the UK.
Good lines of communication protect both parties – so keep them open. If you cannot respond to a message for lack of time or because the answer is complicated, a holding response can work wonders in alleviating some of the other parties’ frustration. A holding response doesn’t need to confirm precisely when the substantive response will follow if that cannot be guaranteed.
Example: “Thank you for getting in touch. I’ve received your message and will respond in due course.”
A simple acknowledgement is better than no response at all.
4. Your calendar is your friend
Construction contracts invariably include timescales, even if due dates are relatively loose. Time scales apply to both parties. Common dates include scheduled payments for the person hiring the contractor and completion of specific milestones in the project for contractors.
Periodic reminders can be vital to catching issues early and avoiding them spiralling. Some examples may include the following:
- A weekly reminder to check in on the progress of the work and any upcoming key contractual dates.
- Regular written communication about variations that you discuss on-site. In an ideal world, this would be an email from the contractor confirming the specific price variations (change in material choice, additional works, etc.), the change to the overall contract sum and the effect on timescales (e.g. whether this will mean certain stages start later and the completion date will change). A follow-up email from the employer agreeing to these points would be even better.
- Review timeframes for completing particular works if the contract does not include specific dates.
You can tailor this approach to suit you, using a paper diary, flip calendar, or the calendar app on your phone.
Whichever method you choose, keeping track of these dates is critical to prevent breaching the contract and avoid a construction dispute.
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5. Keep notes
People have meetings where they think matters are agreed upon all the time. However, their recollection of events differs drastically within a matter of days. From my experience of taking clients through documents, human memory is flawed.
When both parties’ memories are different, the court can have real difficulty making determinations, leading to judgements that don’t reflect the factual position for lack of evidence.
I often point this out to contractors when they invoice for work that isn’t in the contract. Although it’s common for project scopes to change and evolve, all parties must document them. This could even consist of a summary email at the end of each working day/week outlining discussions and agreements.
Clear and documented communication will help to ensure everyone is on the same page and disagreements are caught early. Important factors to avoid construction disputes.
6. Trackers and case management
As a solicitor, I know what juggling documents, dates, and communications with all parties feels like. We deal with this efficiently by using case management systems, online filing, and productivity tools. I highly recommend this way of working. It helps to keep the project on track, discover issues, and meet expectations. There are loads out there to choose from, one example is Monday.
You’re probably thinking, “Well, what about the additional cost?”. I would argue that the money saved using organisational tools far outweighs the costs. But this method doesn’t have to cost anything. Even just keeping track of everything in a spreadsheet can work. And, using cloud storage allows you to keep documents or photos in one place that you can access anywhere.
Having the correct information to hand can, in itself, avoid construction disputes. If you keep notes and save all correspondence, you can refer back to them. For example, if a sub-contractor buys the wrong materials and argues it, you can find the job specifications and construction contract where it states the information.
7. Hire legal professionals
While it may seem like an unnecessary expense, involving legal professionals early in your construction project can save you significant time, money, and stress in the long run. A construction solicitor can provide invaluable guidance on contract drafting, risk assessment, and dispute prevention strategies.
Legal professionals can:
- Review and draft contracts to ensure your interests are protected
- Advise on regulatory compliance and planning permission issues
- Help you understand your rights and obligations
- Assist in negotiating terms with contractors or clients
- Provide early intervention if issues arise during the project
By having a legal expert on your team from the outset, you’re better equipped to navigate the complexities of construction law and avoid potential pitfalls. Remember, it’s often more cost-effective to prevent disputes than to resolve them after they’ve escalated.
How to resolve construction disputes
Early investment of time and effort in applying the tips in this blog can pay off. You can avoid construction disputes or resolve them swiftly, without the need for legal intervention.
However, sometimes it’s not possible to avoid or solve a dispute. With the expensive nature of construction projects, most people will want to ensure disputes are handled correctly.
If you need advice on a construction-related matter, please contact us to speak to our construction legal team who can help you at any stage of the project lifecycle. You can book an initial consultation with our construction solicitors by calling 0203 007 5500.
How can Britton and Time Solicitors help?
We know how stressful and costly construction disputes can be. That’s why our initial consultations with our construction solicitors offer you:
- Unlimited time to go through the details of your case and ask any questions
- An overview of your legal standpoint and your available options
- A precise time and fee estimate for your case
To arrange your initial consultation with one of our solicitors, simply call us on 0203 007 5500.
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