The ABCs Of Avoiding Construction Claims - Agreements, Bonds, And Change Management

Construction litigation is expensive, time-consuming, and unpredict able. Fortunately, there are steps you can take to help keep your company out of court. This article discusses the ABCs of avoiding construction claims: agreements, bonds, and change management.

Agreements

A well-written agreement can help you avoid disputes and resolve any that do arise. Agreements should be in writing and address scope of work, price, and procedures for changes and defaults.

Some agreements include clauses mandating that disputes go to arbitration instead of court. Arbitration can sometimes be faster and cheaper than the court process. In the court process, documents and hearings are available and open to the public; some parties prefer arbitration because it can be confidential. Additionally, in an arbitration, the parties can choose an arbitrator with expertise appropriate to the dispute, such as an accountant or an engineer.