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Early action helps avoid costly building disputes
In challenging times for the construction industry, the last thing a company needs is to become embroiled in costly building disputes with their clients.
Disputes over work carried out can arise even with the best intentions between both parties, warns Richard Metcalfe of Metcalfe Stanley Hicks, the Hadlow-based Chartered Building Surveyors.
“There may be insufficient detailed contract documents leading to wrong assumptions, unexpected complications, poor labour or contract management, bad weather, changes in client requirements, slow decision making or lack of financial management,” said Richard.
“Even with an experienced contractor and client, disputes can sometimes arise. With an inexperienced and first time client disputes are more likely, particularly when contract documentation is sparse.”
If a dispute does arise the legal solutions available are mediation, adjudication, arbitration or litigation – but these can prove costly.
“The best advice is to put measures in place to try and prevent disputes cropping up in the first place,” said Richard.
He suggests:
- Ensure both detailed drawings and a specification that clearly states the Employer’s requirements and defines the contractor’s scope of work exist;
- Select an industry standard form of contract and ensure that it is properly executed;
- Employ a professionally qualified person as a Contract Administrator;
- Ensure the client understands the building process and building control procedures;
- Ensure the contract specifies the extent and timing of the work to be done, the total cost and payment intervals and method of valuation;
- Ensure the rights and responsibilities of all parties are detailed in the contract and understood by all sides;
- Ensure all parties have a copy of the contract and any amendments to it;
- Keep communicating throughout the project, explaining any problems that could cause delays or effect the ability to meet the agreed specification.
However, having those measures in place is no guarantee that you will avoid a dispute and if one arises, that is when a professional such as a Chartered Building Surveyor can help.
“While mediation, adjudication, arbitration and litigation all have their place, a dispute can often be resolved informally,” said Richard. “Metcalfe Stanley Hicks helps with many building disputes, often assisting the parties to reach an out of court agreement.
“We find that an inspection and report by an experienced Chartered Building Surveyor which sets out the issues clearly in the context of the contract as envisaged at the outset will break the impasse. Often it enables the parties to find common ground and resolve their dispute.”
Expert advice can also help if a dispute has already reached court, added Richard. “A Single Joint Expert report will help the Court in reaching a judgment,” he said.
For more information on Metcalfe Stanley Hicks, visit www.msh-cbs.co.uk.
Source: Maxim PR / Metcalfe Stanley Hicks
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