Managing Contractor Disputes

What is a contractor dispute?

A dispute occurs when there is a disagreement between two or more parties involved in a contractual agreement. Typically, it involves one party not holding their end of the agreement, in other words, the dispute is a result of the parties not seeing eye-to-eye on a specific matter.

Most common areas for contractor disputes:

• Errors in a contract: any mistakes made in the contract, thus altering the intended terms of the agreement.

• Breach of contract: failing to comply with specified obligations outlined in the contract.

• Miscommunication: this can arise from lack of understanding or failure of one or more of the involved parties not complying with the agreed terms and specified obligations.

• Differing conditions: disputes arising from unexpected conditions, not aforementioned in the contract.

• Clear payment terms: unexpected costs or non-payment can alter the entirety of the project and even push the venture behind schedule.

• Substandard work: if the work performance does not meet the agreed upon standards of quality.

How to effectively resolve a dispute with a contractor:

• The most effective approach: have an open and honest conversation with all involved parties regarding the arising problems.

• Express your concerns: show your dissatisfaction clearly (best put into writing) to convey any issues to all parties and ensure you are on the same page as to most effectively work on resolving the problems.

• Consulting a lawyer: while some disputes can be resolved cordially through simple communication, should the issues persist, it may be wise to seek legal assistance and consult with a qualified attorney. A lawyer can assess your situation and provide their legal recommendations on the most appropriate solution for your situation.

  • Negotiation through litigation: sometimes choosing the legal route is a must, in which case a well-practiced litigation attorney can significantly assist in negotiations.

  • Always remember: it is just as important to research the lawyer, or firm, you want to consult with first. By finding a specialized lawyer to help in your situation you are ensuring prompt and effective service.

Preventing disputes in the first place:

• Communication is key: The most important part of any agreement is to have clear and consistent communication to make sure all involved parties are on the same page throughout the entirety of the project.

  • Should issues arise: address them immediately – don’t wait around or assume the other party sees the issues you see, or that they will prioritize them in the same way you would.

• Track progress regularly: By maintaining precise records (daily, weekly or monthly) it helps keep track of the schedule.

  • Document consistently: putting everything in writing is a great way to record all communication about terms, expectations, issues, resolutions and ultimately, follow the contract that you have signed.

• Ensure contracts and agreements are drafted clearly: nothing ambiguous or open-ended, negotiate carefully and focus on major tasks to prioritize key elements in the agreement.

  • Include dispute resolution procedures: specify how disputes will be handled, including solutions for missed deadlines or anything you anticipate may render the project issues.

  • Research your partner (company): investigate the company you’re going into business with. Look into their online presence, do they preemptively meet your project expectations or values. Is there positive feedback you can confirm from any public reviews.

  • Seek professional assistance when needed: whether you are seeking to hire a company to complete a service, or if you are a contractor seeking to provide services to other individuals or companies – ensure your contract is well-written by clearly communicating the terms of the agreement, also certifying to comply with any local, state and federal rules and laws.

In summary:

By adhering to these suggestions, you can make sure all involved parties are on the same page, when starting a new project. Remember – by having a well-structured agreement that defines the wanted services clearly, in detail, and meets all legal requirements, you may be able to avoid any altercations and effectively resolve any dispute that comes your way.