Common Construction Disputes To Watch For—and How To Avoid Them

Construction projects often involve many moving parts, which can lead to disputes erupting. It could be a disagreement between the contractor and the client on the deliverables or a payment issue that slows everything down. Construction disputes can cause costly delays, strained relationships, and even legal battles. However, most disputes can be avoided with proper planning, clear communication, and structured contracts. Let’s look at some of the most common disputes in construction and how you can prevent them from derailing your project.

1. Confusion Over Scope of Work
One of the biggest causes of construction disputes is a misunderstanding of the scope of work. A subcontractor may assume their bid covers only part of the project, while the main contractor thinks they have a broader scope. Similarly, clients may believe that certain features or upgrades are included, only to realize later that they come at an additional cost. This confusion can bring up disputes in the process. To avoid this, have a construction contract that details the scope of work, leaving no room for misinterpretation. Additionally, discussions before the work begins can ensure that all parties are on the same page.

2. Payment and Budget Issues
Money is another source of tension in construction. Disputes often arise over unpaid invoices, delayed payments, or budget overruns, possibly bringing a project to a standstill. For example, a contractor may halt work if they don’t receive funds to pay workers or suppliers on time, or a client may refuse to release funds if they believe work is incomplete or subpar. To avoid non-payment, establish precise payment schedules and include detailed contract cost breakdowns. You may also consider leveraging a mechanics lien to secure payment.

3. Quality and Defects
Quality disputes can arise when a client believes a project doesn’t meet their expectations. For instance, a client may argue that a contractor used low-quality materials or didn’t follow design plans. On the other hand, a contractor may claim that defects stem from errors in the original design. These conflicts can lead to expensive repairs, delayed project completion, and even legal action. The best way to avoid quality disputes is by hiring skilled laborers, using high-quality materials, and conducting regular inspections throughout the project. If issues arise, addressing them early rather than waiting for the client to take legal action is advisable.

4. Project Delays
Delays are frustrating and almost inevitable in construction. Bad weather, labor shortages, supply chain disruptions, and unforeseen site conditions can all delay a project. If a contract includes a finish date, delays can result in penalties, additional costs, and strained relationships between contractors and clients. To avoid this, build reasonable contingency time in your contract and clearly define what qualifies as an excusable delay. Also, regular progress updates and prompt problem-solving can keep your project on track and minimize disruptions.

5. Miscommunication
Lastly, poor communication can also lead to construction disputes. Unclear instructions, inconsistent project updates, and undocumented verbal agreements can all lead to confusion about project details, deadlines, and responsibilities. The solution? Establish clear communication channels, document all project decisions in writing, and hold regular meetings to address misunderstandings or concerns. A well-documented paper trail can also serve as valuable evidence in case disputes arise.

Contact Us for Any Construction Legal Issues

If you’re in a construction dispute, contact our Knoxville construction law attorney at Reynolds, Atkins, Brezina & Stewart, PLLC, today to help you navigate the issues and protect your interests.