Building disputes

Disputes and misunderstandings between contractors and homeowners do happen from time to time. The ultimate reason for such disputes is sometimes due to poor craftsmanship, but the majority of time it relates to miscommunication.

Disputes and misunderstandings between contractors and homeowners do happen from time to time. The ultimate reason for such disputes is sometimes due to poor craftsmanship, but the majority of time it relates to miscommunication.

For a contractor to take a bit of time before the job starts to have a fulsome conversation with a homeowner and to summarize this in some form of contract or other writing, can greatly reduce the chance of a possible dispute.

Here are 10 things for every contractor to do before agreeing to do a job:

Set everything out in writing. It does not need to be a lengthy agreement, but a short note to confirm the job speaks volumes as compared to a future “he said, she said” scenario. Who will be responsible for paying the invoice? This is the person who needs to formally approve everything. Major problems can arise when you receive conflicting information, but the ultimate payor does not acknowledge or agree to a change order for example.

Set out the scope of what service and material you will provide for a set price. Or, will your fee be based upon time and material, or cost plus.

Know your building codes. Building codes frequently change and it is better to take the time to learn the changes as compared to completing a job and then finding out that it is does not comply with the revised code.

Never bid on jobs without making sure that you account for all reasonable contingencies. Deal with problems. Construction is sometimes compared to a battlefield. There is unknown ground, weather related issues, and sometime surprises. Be upfront with the homeowner if a problem develops. A relationship can turn sour quickly if the homeowner loses trust in his contractor.

Disputes happen. If a dispute happens, try to resolve it amicably and openly.

Make it clear when you expect to be paid. Is it upon completion of the job, 30 days after completion or will there be a number of progress payments at set intervals.

Make it clear for how long your work will be under warranty and what items are covered.

Be aware of mechanics liens. Understand how the holdback can affect your cash flow in terms of paying subs. Conversely, understand how you can use mechanics liens to get paid for your work. Jeffrey A. Cormier is a partner with Key Murray Law. Reach him via e-mail at jeff.cormier@keymurraylaw.com This column is intended for informational purposes only and is not intended to replace or substitute for any legal or other professional advice. If you have specific concerns or a situation in which you require legal advice, you should consult with a lawyer.