Disputes often arise during the course of a construction job. If heeded, the following 25 suggestions are ways in which contractors can minimize chances of having a dispute on the construction site:
- Do not perform work outside your license authorization.
- Avoid under-bidding jobs.
- Know when to say no to a job.
- Use a written, detailed construction contract for all jobs and make sure it is properly executed before beginning construction.
- D not substitute materials or fixtures without a signed authorization from the owner.
- To the extent possible, use quality materials.
- Make sure all permits and license are properly obtained before beginning construction including proper certifications for termite inspections.
- Utilize written change orders for all changes and make sure the owner signs every change order.
- Carefully follow all mechanics’ and materialmen’s lien requirements on every job and give all notices as required by statute.
- Keep an accurate daily diary of all construction activities and take periodic photographs of job progress, especially milestones.
- Maintain accurate and complete records of all labor and materials used on the job site including accurate records of all transactions, purchases, expenses and add-ons.
- Keep copies of all inspections and sign-offs by all inspectors.
- Use only licenses subcontractors.
- Require all subcontractors to have a written construction contract.
- Have consistently defined milestones for payments to all subcontractors.
- Consistently require signed lien waivers from all subcontractors upon payment.
- Keep a log of all work done by subcontractors showing beginning date, milestones and completion date.
- Become familiar with the construction standards, particularly those of the Registrar of Contractors, with respect to each type of job performed.
- Adequately document in writing any dispute resolution meetings with the owner of his representative, tell who was there and what was discussed or decided.
- Promptly respond to all complaints especially formal complaints to the Registrar of Contractors.
- Contact legal counsel immediately upon receiving a complaint; don’t wait until shortly before a scheduled hearing date.
- Be present at all job site inspections, especially those done by the Registrar of Contractors or third parties.
- Have legal representation at all hearings before the Office of Administrative Hearings.
- Maintain adequate bonds and insurance consistent with the scope and possible liability of each job.
Consistent with your construction contract, do not let the owner take possession until you are paid.
