Construction litigation can be the result of numerous different issues. Concerns about the quality of the finished product could lead to defect claims from clients. Frustrations regarding changes to the proposed timeline for project completion can also lead to unexpected expenses and conflict.
In some cases, disputes begin with a supply chain issue. Supply chain problems have haunted the construction sector for roughly half a decade now. Lumber, structural steel and other building components are occasionally and unpredictably difficult to access at market rates. Construction companies and suppliers may need to address supply chain disruptions ahead of time to avoid litigation.
Contracts can address supply chain concerns
There are factors, including environmental disasters and geopolitical conflicts, that businesses cannot control. Including provisions in a contract to address factors outside of either party’s control can be a smart move. The terms of a project contract can allow for additional flexibility regarding the project timeline. Flexibility can be critical, especially in cases where clients request specific materials.
Communication can prevent a dispute
As soon as a construction professional, business leader or supplier knows about a supply chain issue, they likely want to communicate the potential impact it could have on the project.
Including provisions for how they communicate those issues in the original contract can be helpful. Notifying the client in writing of the possibility of a delay and the impact that supply chain issues could have on project pricing can help prevent an issue from spiraling out of control and triggering litigation.
While supply chain issues are unpredictable, the potential for them is a predictable factor. Having appropriate contract provisions, proper business practices and adequate communication standards can limit the likelihood of a construction dispute damaging a company’s finances or reputation.