Four Tips to Help Contractors Avoid Litigation

By Cotney Construction Law.

Litigation is a common occurrence for contractors.

Despite who is at fault, there are several ways disputes can arise, leading to litigation. Not only is litigation costly, but it can also ruin a company’s reputation. Follow these tips to help contractors avoid litigation.

1. Document Everything
Contractors should have a paper trail for each project. Everything should be noted, even delays. There is always the potential for delays due to unforeseen circumstances and documenting that you’ve notified your client will help you if litigation ever arises. Keep a detailed record of any disagreements with the client and how the dispute was resolved. If there was an arranged payment schedule, make sure to note that along with the agreed-upon action in the event of a late payment.

2. Review Plans
Take time with the client to go over all of the plans to ensure both parties are all the same page. Going over the plans in advance can prevent problems down the line.

3. Have a Written Contract
Always have a written contract for any projects and include the requests made by the client. For special requests made after the contract is signed, create an addendum and have both parties sign it. Contractors should also include a timeline for when each phase of the project will be completed.

4. Consult with an Attorney
When disputes arise, make sure to consult your attorney. Attorneys can help you navigate disputes when they arise or avoid disputes altogether when possible.

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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

About Cotney Construction Law 
Cotney Construction Law, LLP is a national construction law firm that advocates for the roofing industry. The firm serves as General Counsel to Florida Roofing and Sheet Metal Association (FRSA), Tennessee Association of Roofing Contractors (TARC), Roofing Technology Think Tank (RT3), National Women in Roofing (NWIR), and a number of local roofing associations. Cotney Construction Law’s practice areas include construction law, litigation, arbitration, contract review & drafting, immigration, employment, OSHA defense, licensing defense, bid protests, lien law, bond law and alternative dispute resolution. Learn more at www.cotneycl.com.