2 common examples of payment disputes

On Behalf of | Feb 4, 2020 | Construction Contracts |

Construction is an in-demand and profitable business. However, if you do not receive payment timely, your construction business may face hard times making projects come to fruition. Without the necessary capital infusion from clients, you may not make payroll or purchase supplies.

Payment disputes in any facet of the business may threaten your livelihood. This is why we have a dedicated team to handle the things that may crop up, causing payment delays. Familiarize yourself with two such common issues.

Contract issues

Before starting a project, you and the owner worked out an agreement that outlined the work to do and the cost of completion. You and the client both may have responsibilities under the contract, and if one of you believes the other did not fulfill those obligations, a contract dispute may arise. Sometimes, this seems like a stalling method to avoid rendering payment. However, in other situations, a valid disagreement between the work done and the contract may validly exist. Getting help in resolving this is crucial to getting paid.

Change order disagreements

In some instances, a modification in the contract is necessary. This can occur due to a change in circumstances on the job, such as the discovery of a more extensive issue that needs correcting expanding the scope of work, or on the converse, the project may not turn out as vast as contemplated in the contract. A change order is a document amending the terms of the agreement, and there is the possibility of one or the other party not agreeing with the changes contemplated therein. As such, a dispute in the scope of work may arise and cause a delay in payment.

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