Every new construction client is an opportunity for income. Businesses and professionals often bid aggressively on high-value projects. Unfortunately, the completion of a project does not always produce mutual satisfaction. Sometimes, clients withhold payment or even initiate a lawsuit, asserting that there is a defect with the finished project.
What steps do businesses and professionals generally need to take when responding to defect claims by customers?
Reviewing contracts and communication
In scenarios where the finished project deviates from the client’s expectations, they might try to pursue a partial refund or request that the company or professional redo the work that did not meet their standards. Checking the details of the contract can help determine if those expectations were ever properly disclosed.
Communications with clients can be important to review as well, as there may have been modifications made to the initial agreement. For example, the discovery of subterranean issues at a project site might have led to a change order, which may explain changes to the appearance of the final project, delays in project completion or even the need to substitute materials in some cases.
Typically, companies need clients to approve and sign change orders before implementing them. Establishing that the work performed meets contractual requirements and that the client was aware of any adjustments can be helpful.
Explore settlement options
Dissatisfied clients are often willing to withdraw pending lawsuits in return for certain concessions from professionals and construction businesses. Companies can take the lead by looking for cost-effective compromises.
Perhaps the company can agree to provide the labor to redo work at a discounted rate or for free, provided the client pays for materials. Exploring ways to settle and communicating with the client or their lawyer can sometimes prevent a construction-related dispute from spiraling out of control and leading to months of conflict.
Prepare for settlement efforts failing
Proposing reasonable settlement terms is important when dealing with a construction dispute. However, there’s never any guarantee of the client responding reasonably. If settlement attempts are unsuccessful, the matter may end up in front of a civil court judge.
Construction professionals and businesses generally need to continue preparing for the possibility of litigation even while attempting to settle. That way, if the matter does go to court, the likelihood of an expensive, unfavorable ruling is lower.
Trying to navigate construction defect disputes without support can be a costly mistake. Professionals and businesses often need help reviewing the situation, communicating with the other party and presenting the issue effectively in court if necessary.
