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Business & Commercial Litigation

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Strategies To Limit The Chance Of A Construction Contract Dispute

  • On Behalf Of: Brian O'Toole
  • Published: June 7, 2018

Construction companies in Texas rely on contracts to establish the terms for price, schedule and building standards when setting up a project with investors. Many situations could cause a contract dispute to flare up, leading to minor delays or snowballing into costly breaches of contract. Most problems arise from the parties misunderstanding a contract, experiencing delays, failing to administer a contract or making unsubstantiated claims against other parties. Before any ground is broken, builders and investors can take proactive steps to reduce the possibility of misunderstandings and disputes.

Planning for success and the possibility of dispute could create an agreement that allows the parties to complete the project without significant disruption. At a minimum, each party should read the contract carefully and gain a full understanding of its terms. When a clause is unclear, the parties should strive to clarify the issue before executing the contract.

Thorough project planning can help avoid delays or disagreements. Contractors could benefit from developing precise estimates and realistic schedules that can weather small delays. The availability of materials should be confirmed. The general contractor should also identify reputable subcontractors and ensure that they understand their obligations ahead of time. Once the building project begins, the parties should report to each regularly and address problems as soon as they arise.

Despite careful planning, contract disputes might still come up. In that situation, a person might want legal representation. An attorney may offer guidance about how to navigate the dispute resolution process. Legal advice may be appropriate during mediation or arbitration. If a case must advance to court, an attorney might organize documentation that illustrates the source of the dispute and the financial damages that have resulted from the opposing party’s mistakes.

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