Running a construction company is, at best, challenging. No matter how skilled your workforce is, issues will inevitably arise. Being aware of the common types of problems that might occur on the job goes a long way in helping you prevent them.
Unclear terms often lead to conflicts in contracts. Even when both parties sign a contract, there may not be a clear understanding of the client’s expectations. It’s important to remain calm when dealing with unhappy customers. Pay close attention to their concerns, do your best to understand the issue and work towards a reasonable solution.
Types of contract disputes
Here are some of the most common conflicts that owners of construction companies face:
- Delays can occur when materials for the job are on back order, an employee gets sick or if your team is constantly taking breaks.
- Design flaws can upset your clients, especially if the construction team doesn’t follow instructions and the finished product doesn’t meet their expectations.
- Sub-par materials may save you money, but if your client specifically requested solid pine cabinets, deviating from their original request can cause issues.
- Changes to scope can lead to disagreements between you and the client. For example, a client may unexpectedly request that a den be added to their house. This can result in disagreements over budgets, schedules and the original contract terms due to these sudden modifications.
- Financial matters are often a source of conflict, especially if a contractor bills for additional work beyond what was originally agreed upon.
Most issues in projects arise when the initial contract is broken. In such scenarios, it is crucial to have a conversation with your customer to describe the circumstances and work out a solution together. However, if your customer is unwilling to cooperate with you to resolve the problems, it might be time to seek assistance.