Conflict and disputes on construction projects are a leading cause of distraction and expense. So what if you knew how to avoid conflict in the first place? And if issues do arise, what if you had the keys to resolve disputes quickly and easily?
Norton Rose Fulbright Lawyers Partner, Jeffrey Wilson has those keys and will share them with you at next week’s Master Builders Legal Seminar, The top five causes of conflict on construction projects and how to avoid them.
Mr Wilson says there are simple strategies to put in place from the very start of a project that can prevent grief later. Among the most common causes of conflict are when the other party to the contract is in financial difficulty.
“When a party is in financial difficulty, often the first thing they will do is cut corners,” Mr Wilson said.
“Also, they mostly aren’t going to admit that they are in difficulty, you will just have to read the signs,” he said.
“The best way to avoid conflict of this type is to be conscious of this as a possibility, right from the start, and undergo your due diligence in investigating the financial situation of anyone you contract with.”
Mr Wilson suggests that during the course of a contract, you should be aware of the indications that a party is in financial difficulty. These may include their suppliers changing terms or suddenly requiring payment by cash.
“The most important thing to remember is to be aware of potential causes of conflict from the beginning of a project, and ensure you have good procedures and record keeping in place from the start,” he continues.
“A bit of work up front to set things up correctly is a good investment and saves you from issues down the track.
“Disputes can be very distracting and expensive so a contractor in a dispute must constantly assess their position and decide whether it’s worth continuing with the dispute or if it’s better just resolving the issue now.”
Among the tips and information that Mr Wilson will offer, he will also share some ‘war stories’ as examples of dispute that could have been avoided.
“A major contractor for the refurbishment of a power station in South Australia was in a dispute where the big issue was a claim for variations that were all based on verbal discussions,” he said.
“The dispute, which was resolved in court, really highlighted the importance of keeping good records, verbal agreements if not properly recorded might not be enough.”
To hear Mr Wilson’s other tips on what are the top causes of conflict on construction sites and how to avoid conflict them, come to the Legal Seminar next Thursday.
When: 17 July.
Where: Master Builders Training Rooms, Ground floor 332 Albert St, East Melbourne .
Cost: $30 for members. $100 for non-members.