Disputes in construction contracts can happen for many reasons, causing delays, confusion and potential financial problems.
These arguments often come from misunderstandings and different expectations. Here are four common reasons construction disputes happen.
1. Unclear instructions
One of the main reasons for disputes in construction contracts is not giving clear and detailed instructions. When project requirements are not well explained, it can make things confusing about material usage, project parameters and a timeline of work goals. This lack of clear directions can lead to different understandings, which can cause fights among the people involved.
2. Unexpected changes
Changes are normal in construction projects, but when they happen without good communication and agreement, they can start disputes. Sometimes, changes in project plans, designs or unforeseen site conditions are not talked about properly in the contract. Without a good way to deal with these changes, arguments can happen about how they affect the project’s timing and money.
3. Money problems
In Florida, construction is a big industry. The state ranked second in the nation in 2020 for building permit value at $37 billion. As a high-stakes industry, disagreements about money can happen at any level. These conflicts often arise due to ambiguities in payment terms or delays in payment processing, leading to project slowdowns or work stoppages.
4. Not handling risks well
When potential risks, such as weather-related delays or unforeseen supply chain issues, are not addressed in the contract, disputes can arise about who bears responsibility for these disruptions. A well-drafted contract should clearly outline risk-sharing mechanisms to mitigate conflicts related to unexpected events.
Construction firms need to meet tight deadlines and ensure safe construction. Recognizing the above factors can help reduce the likelihood of contract disputes, which can quickly slow progress.