Simple Steps for Preventing Construction Claims
Construction businesses have the second-highest bankruptcy rate than any other type of private business. One in four projects in the construction industry receives a claim. Why? Because construction is seldom simple. Projects are complex, which makes them all more susceptible to disputes and claims. The process could be going great, but one delay, late payment, costly rework, or an unpaid invoice has the potential to derail your progress wherein you’ll be receiving legal claims from your client. Even if the project is completed, there is still a possibility of getting a claim.
Constructions are a major hassle and will leave you grasping for the remains of your company. Painstaking litigation and legal claims are harmful to any construction company as this can affect them years after the job has been done.
Consequently, if you want what’s best for your company and avoid high risks of getting a claim, invest in a training course for this matter with construction wiz Jamil Soucar. Jamil’s construction claims training course will provide you with everything you need to know in claims management. Below are some of the approaches Jamil Soucar will teach your workforce regarding the prevention of unanticipated construction claims.
Write A Well-written Contract
A construction claim can be produced when a party requests compensation not anticipated in terms of the original contract or the contractor’s failure to meet contractual terms. We know that there are some instances where things beyond our control happen, and for that, you must be ahead of everything. One way to prevent construction claims is to have a well-written contract.
Contracts are essential to any business. While oral agreements are generally enforceable, written ones are easier to prove. Great contracts have a fair allocation of risks across all the parties, which helps mitigate the risk and reduce disputes. It should clearly define terms and conditions that protect all the parties. Also, don’t be sly; instead, be open and transparent to manage expectations effectively. A managed expectation is your first-line defense against claims. Lastly, read and be familiar with all the contract terms as failure to provide notification can be a potential legal claim.
Maintain a Good Relationship
Business is business, but it is also essential to keep a strong client relationship. This can go a long way towards helping smooth things over when things don’t go as planned. Maintaining a good relationship is not taking advantage of them; rather, be in their good graces. We are all just people, after all, nobody is born perfect. People understand that mistakes can happen even unintentionally, and things just go wrong. When you have a good existing relationship with your client, you can communicate effectively. In addition, you are more likely to better resolve your differences without resorting to sending claims.
Implement Construction Safety Practices
There are plenty of claims type you can receive at any time. One of them is the damage claims. These construction claims are given to contractors as they can damage property while completing a construction job. They may be held liable by the client through the filing of these claims against the contracting company. To be ahead with this problem, you need to consider acquiring insurance. You might be a frugal business owner, but this is another excellent investment. Without insurance against property damage on the job site, your business will face negative consequences like bankruptcy. Being insured on property damage liability enables you to avoid negative consequences for accidental damage. Moreover, you are mitigating injury risks by implementing safety practices to protect your company as well as the workers.
Some construction projects end in a lengthy dispute between owner and contractor. Disputes are inevitable as this can be a result of the careless actions of a client, contractor, or due to some unforeseen circumstances. As much as possible, you might want to avoid disputes as this can damage your name, relationship with the other party, costly, time-consuming, and may disrupt progress. Other than the approaches mentioned above, communication is a method of preventing claims. Construction business is all about communication as it helps resolve issues efficiently. As a contractor, you have to be transparent so communicate with the client timeously, notifying them when problems, delays, and variations arise. You can keep a documentation of the progress, change orders, costs, schedule, and project diary to provide your client why things are not going as planned.
The steps to preventing construction claims mentioned in this article are only a small portion of what you’ll learn from Soucar himself. His expert knowledge will enlighten you of the mechanisms of claims management. So, secure a training program with him today.