If you’re operating in the commercial construction industry in New Jersey, you frequently deal with several elements when completing a large project. Inevitably, when you have several details to follow in a contract, there may be disputes. Understanding more about the common causes for these conflicts can help you become more informed and find ways to avoid them.
Failing to comply with the contract
Examining the primary causes for disputes in the commercial construction industry indicates that the most significant reason for conflicts is related to non-compliance with the contract or failing to understand the required obligations. The lesson learned from this finding if you’re a contractor or owner is to ensure both parties are clear about the contract terms. Doing so can help eliminate disagreements.
Changes by the owner and errors in the contract
A second significant cause for disputes in the construction industry is related to owner-directed changes and errors in the contract documents. As megaprojects become more complex and several parties get involved, it’s another reason why all parties must understand their roles in a project. It may also be beneficial to implement a refined process that can help eliminate problems when an owner wants to change direction with construction.
The third cause for disputes is related to third-party events that become an overwhelming force to handle. This element is significantly in line with the failure to understand contractual obligations. Interestingly, results from other areas worldwide indicate similar causes for disputes.
Eliminating disputes is unlikely when you’re working on a megaproject. One way to help reduce conflicts is to obtain up-front assistance from a professional who understands how to circumvent problems and assess the risk factors. Doing so can help reduce the need for litigation.
Understanding the top reasons why disputes in the construction industry occur can help your company become more aware of handling and avoiding these issues.