Building projects are complex and can often lead to contract disputes when things go wrong. However, there are practical steps you can take to help avoid this. Here are some of our recommended tips to help avoid construction disputes.

1. Put a written contract in place  

Getting the contract right at the outset of a project is an investment in the project itself. A good contract should:

* act as an accurate written record of each parties’ rights and obligations;

* encourage discussion between the parties before the project starts as to each parties’ expectations;

* help the parties navigate issues that might otherwise turn into disputes.

2. Understand your contract

Get the contract terms reviewed by a solicitor. Contracts can be complex documents and you need to understand your rights and obligations before signing any document. Amongst other things, a good solicitor should:

* explain any legal jargon in simple terms so you understand what it means;

*ensure the contract reflects the commercial agreement as you understand it;

*highlight any particularly onerous terms and suggest amendments.

3. Clear project timeline

Have a clear agreement in place regarding time. Delays are a common cause of dispute, so it is important to be realistic in the negotiation stages. A clear written plan will help both parties keep on track and reduce the liklihood of misunderstandings. Any potential delays should be highlighted as soon as possible. Confidence and trust are less likely to break down if the parties are honest and upfront with each other.

4. Budget and payment transparency

It is important when negotiating to be transparent and upfront about costs. Try to be realistic about what can be achieved for a particular price to save having to renegotiate further down the line. Including payment schedules in the contract can help keep the project on track. Prompt payment is key to the cash flow of all businesses, but it is particularly important in construction projects as it helps to manage project costs.

5. Keep regular records. 

Things can change, which can result in the original agreement needing to be varied. For example, changes to the payment terms, timeframes, or scope of work. If these changes aren’t agreed in the proper manner, they are likely to result in a dispute. A good contract should set out a clear process for making and recording. It is a good idea to ask a solicitor to review a contract variation before signing it off, to ensure it reflects your understanding of what has been agreed.

6. Open line of communication

Communication is key.  Highlighting potential issues early on could reduce the likelihood of a minor problem becoming a major one. It could also save both parties time and money.

How we can help

We give practical legal advice, support and guidance for your business.  Ensuring your contracts protect your business and reflect your own business practices can be vital in preventing building disputes, or strengthening your position if a dispute does arise.

As well as reviewing, drafting and negotiating contracts, we can also provide bespoke agreements tailored to your business.

If a dispute does arise, we advise on a wide range of construction disputes, including claims for:

* delay and disruption

* defects

* dilapidations

* price and payment.

This article does not constitute legal advice. If you would like further information in respect of construction contracts or building and construction disputes, please contact us via the website or call our offices on 0113 266 0735.