If you're operating a small construction firm, you may be working on a razor-thin margin to stay competitive. That means you can't afford additional costs or drags on your time without being compensated.
All too often, construction firms lose both time and money when they became embroiled in disputes over projects. Worse, a dispute could ultimately damage a firm's reputation.
Fortunately, however, there are several steps you can take that may help avoid potential disputes and quickly resolve any that pop up.
What's the cause of most disputes? Typically, parties will disagree about the terms of a contract. But disputes may arise for the following reasons:
In the worst-case scenario, a dispute can turn into a breach of contract, an outright termination or a claim against surety bonds (see right-hand box) or some other legal action. The best way to resolve a dispute is to ensure that it never happens. Although there are no absolute guarantees, the following eight steps may help:
Surety bonds are common in the construction industry because they offer some measure of protection in the event of a dispute.
These bonds are contracts between three entities:
Essentially, the surety guarantees that you're good for the money if something goes wrong.
Surety bonds can be costly, so the surety has a vested interest in helping to resolve disputes or at least minimize the damages. For instance, a surety may become involved when the parties can't come to an agreement and suggest satisfactory resolutions. Keep this option in mind when disputes arise.
Get in touch today and find out how we can help you meet your objectives.