Common Construction Disputes that Can Jeopardize a Project’s Success
Summary: Construction disputes occur on a regular basis. However, failing to manage these disputes can lead to costly outcomes.
Disputes often arise because construction project managers and other parties are not as willing to compromise and use money to address glaring issues. As a result, many of these disputes ultimately make their way over to court.
This article is designed to list some of the most common construction conflicts that are prevalent in today’s job sites.
Plans and Specifications of the Project
Disputes over the contract scope of work are some of the most significant areas of dispute in the construction industry. These disputes generally occur between the owner and the general contractor or subcontractor. Because contractors tend to interpret the plans differently, the owner may see a different vision than what the team is building, especially when plans or specifications are unclear or ambiguous.
Often, there is an implied warranty on the part of the owner that the plans are made clear, accurate, and buildable. However, there are almost always exculpatory clauses within the contract where the owner can shift the responsibility to the contractor.
Extra Out-Of-Scope Work
Disputes over change orders and extra work can come down to the change order price and whether the contractor is entitled to more time. Frequently, the owner can request pricing for the work but then disagree with the extension request, thus limiting the contractor’s ability to proceed.
This common situation may leave parties fighting over the amount at the end of the project. Unfortunately, the impact of claim of this manner must wait until the project is completed to determine the overall impact of the changes.
Blog submitted by Lyle Charles: For skilled construction claims management, construction advisory services, and more, visit of Lyle Charles Consulting to learn more.