The issue of confusion
One of the primary causes of construction disputes is a need for more communication. Companies and their customers, general contractors, subcontractors, or suppliers need to understand the contractual terms or communicate effectively during the various stages of a construction project. This could lead to conflicts about time frames, budgets, and other crucial details.
Disputes often arise when the project work isn’t up to par or if some additional costs and delays weren’t accounted for in the project estimation. Many times problems which could be easily solved becomes a catastrophe due to inadequate or inadequate documents. Partners and clients who feel in a state of shock by sudden changes are more likely to take legal actions than those informed “in the loop”.
However, even if the misunderstanding and lack of understanding originate from the client’s perspective, For the majority of construction firms, it is more important than proving who’s responsible in the event of a dispute. No matter if the company is plaintiff or a defendant, construction litigation, it’s a loss of money, time, and professional credibility that’s not affordable.
Below are a few examples of the most common communication-related causes of disputes and litigation. We’ve also included a few tips to aid you in avoiding these misunderstandings.
Construction disputes of various types
Confused about the scope of the subcontractor isn’t aware of the scope of the job they’re bidding. The client has totally different expectations from the contractor. What is the reason they aren’t on the same level?
It’s true that good communication can be difficult, particularly during construction. If parties don’t have an efficient, uniform process for sharing information, mistakes are likely to happen, and they are usually not found until after work has begun.
Since these kinds of miscommunications often occur, tools to connect the dots between different stakeholders, such as construction software for project management, are essential. Traditional communication methods are a chore. Field crews must gather data using paper or pen, or in Excel and then share the data via email or other methods, reports require long to prepare to collect, organize, and then distribute. Project managers are able to spend many hours searching for data from the field, but then weeks pass without a update for partners.
Digital solutions permit construction companies to gather and share data in a standard format. For instance, Raken allows general contractors to create templates that record the entire process in full detail and then share this information with subcontractors and clients in real-time with the press of one button. Instead of getting updates on a regular basis, the stakeholders can track the progress of their projects as they happen spot potential problems early, and implement quick, effective modifications.
Changes in the scope of original work
Many projects are redesigned in the course of development and could need to change the scope. This could range from changes to the original plan due to quality issues or prolonged timelines caused by adverse weather conditions.
Although these changes could be inevitable and unavoidable, there are disputes that can arise if the reason for them aren’t properly communicated to all parties. The delays due to an issue with safety are understandable; however, if the safety issue is only addressed after the deadline is been met, the clients will likely be disappointed.
Daily construction software such as Raken permits GCs to not only edit the daily report, but also also allows reports from different parties, such as subcontractors, to be included to the report. Thanks to cloud storage, any updates made from field work are distributed to the stakeholders in real-time. In addition to having an accurate record of what triggered any changes to the scope of work every day, but you’ll be able quickly and effectively assist your team members know the status of the project with no unexpected surprises.
Software for construction messaging can aid in keeping your teams updated and informed of any modifications to the project.
Conditions of the site
Although the person who is commissioned to oversee the project is ultimately accountable for the site’s conditions, Contractors are legally required to conduct an investigation on their own and spot issues that may cause delays or hinder the project from going ahead according to plan. If the inspections aren’t properly documented, they could result in disputes because it’s difficult to determine what caused the delay is if there’s no evidence.
Raken’s checklists for safety in construction offer a structure which field personnel can use to ensure they’re checking all the right boxes in regards to inspections on site. Take advantage of an important point and ensure that the checklist is well-documented in case changes in scope are required; you are able to refer to the reason for it easily.
Our daily reporting capabilities permit contractors to issue real-time alerts and attach time-stamped images and videos to reports to swiftly alert stakeholders and customers of any issues that may arise on the site most clearly and concisely possible.
Trade disputes
Some disputes arise because of accidental damage caused by trade activities. Plumbers, electricians, or other trade contractors can cause damage that requires significant repairs. Still, it’s usually difficult to pinpoint the root of the problem, particularly when they are working with other subcontractors.
Furthermore, thorough, precise, and timely reporting safeguards construction firms from trade disputes as it keeps an accurate record of what the worksite was like at any moment. With software for managing construction quality, construction companies are able to keep precise records of construction progress and examine photos of the job site to identify when damage has occurred.
Improve your documentation & avoid construction disputes.
Improved documentation for your business can help you avoid the most common mistakes that can cause litigation and disputes. Facilitating the process of tracking and sharing information about projects ensures that all parties involved in the construction project are updated and in touch.
Download our daily construction report template to get an example of professional field documentation. You can also arrange a demonstration now to discover how Raken can help you reduce risks by using better data.