5 Ways Builders Can Protect Themselves Against Disputes

a man in a safety vest writing on a construction plan

Because of the potential for construction disputes, a construction project can be a high stakes endeavor at any point. However, with the right guidance, construction companies have the opportunity to protect themselves.

Whether the dispute is in litigation or out of Court, there are a handful of measures you can take to advance your case and gain leverage.

On the other hand, if you skip the proper steps or ignore the basic concepts, you can easily compromise your leverage in any dispute or negotiation.

Below you’ll find the five ways construction companies can protect themselves.

1. Get the Contract Right

Creating a comprehensive, well-written agreement before work begins is an essential step. The contract should address payment terms, the scope of work, how project changes will be accomplished, and notification provisions.

2. Provide Employees with Proper Training

Your staff, particularly high-level managers, acts as your agents in the field. What they do and say can bind you in some circumstances. Make sure they have the proper training on dispute avoidance.

3. Always Document Changes

Failing to accurately record project changes is one of the most common dispute-causing mistakes made in the field. Gaps in documentation can lead to all kinds of issues in litigation. Make sure you’re recording all changes made to the project as you go.

4. Notify Your Insurer

You must remember to inform your insurance provider of any claims made against you. Notifying your insurer in a timely fashion will give you the best chance of preserving your coverage rights. Providing rapid notification is especially valuable in cases involving alleged construction defects.

5. Create a Document Retention Policy

Establishing a retention policy is a good rule of thumb in any litigation context, including construction. Protecting electronically stored information is more important than ever.

Lakeside Title Company Serves Builders

Lakeside Title Company works closely with builders in Maryland, Washington D.C., Northern Virginia, and Southern Pennsylvania. We take care of all the title work, so you can focus on what you do best. Our business philosophy is designed to simplify the construction process, protect builders from unfair/illegal language hidden in construction contracts, and to share builders’ projects with prospective buyers and realtors so you can sell more houses.

In addition to offering title insurance support for builders, our affiliated Law Firm, Deardorff, Rath & Pichon, LLC can help builders in Maryland. For more information, please visit their homepage.

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