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What are the most common causes of construction disputes?

Every day, construction sites around the country are buzzing with labor and planning, as houses, condominiums and other structures are erected. In Texas, and Austin in particular, the construction industry is booming, and individuals are constantly at work. However, the construction process is often far smooth. Even a well planned construction project can run into problems. With so many parties involved, from property owners to contractors to subcontractors, there are plenty of cooks in the kitchen, and plenty of opportunity for a disagreement.

Construction disputes are common. But what are the most common causes of such disputes? The National Real Estate Investor broke down the five most common situations that lead to disputes in the construction field.

The five most common causes

1. Contract errors or omissions

The biggest reason for construction disputes is one that can be perhaps most easily avoided. A thoroughly vetted contract that is fully agreed upon by all parties can save a huge headache down the line

2. Differing site conditions

While a construction bid is based on the assumption that site conditions are reflected within the initial package, this is often not the case. Subsurface condition differences and other unexpected changes can be a large cause for constriction disagreements.

3. Noncompliance of contractual obligations

While a well-worded contract can be a difference maker, it’s sometimes not enough. If a contractor, sub-contractor, employer or any other party fails to comply with their obligations, the other parties involved will generally try to seek recourse.

4. Failing to correctly administer the contract

Again, a contract issue is at the heart of the disagreement, underscoring the importance of drafting a strong, agreed upon and respected contract.

5. Claims errors

Whether a claim is poorly drafted or even unsubstantiated can make a big difference. Attorneys often define claims in contracts for this very reason.

Avoiding and solving construction disputes

Sometimes, disputes are inevitable. However, they can be avoided or solved once they’ve been brought to light. In each case, consulting an experienced attorney can prevent spending time and money down the road.

Source: The National Real Estate Investor

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