Recent reports indicate that since the onset of the “Great Recession,” contractors are making 20% less on most projects. An effective way to lessen the pain of these decreased margins is to avoid costly disputes.
Manage your risk through careful contracting.
It is almost too basic to say, but if all parties to the construction project reach written agreement on what is to be done, then disagreements are less likely to arise. As well, if things change, document those changes in writing – promptly! Experience shows these simple rules are too often ignored.
Consider your communications very carefully.
What you say and write about a problem can determine your fate. A hasty admission of fault might be used against you in later legal proceedings. Assessing fault in a construction dispute is nearly always a complex issue. So there is no reason to offer a premature opinion about who might be at fault.
Use the attorney-client privilege to your advantage.
When a problem arises, call your lawyer. Assessing a problem in cooperation with your lawyer allows you to explore the problem fully without risk of others examining the results of your analysis. Communications with legal counsel are absolutely confidential.