No one in the construction business wants to end up in a lawsuit, but construction and litigation often go hand in hand. That's why it's important for contractors and subcontractors to adopt smart business practices to protect themselves from legal action if something goes wrong. It also protects their customers.

There are several basic steps contractors can take to avoid lawsuits -- and to be better prepared if they can't steer clear of a dispute. For starters, putting all agreements in writing helps make sure all parties in a new project are on the same page. Construction plans, strategies and working conditions can change at any moment on the job, and a misunderstanding can be costly. Once a contract is written, it's easy to review and modify it if a project changes while work is in progress.

A few other things contractors can do to help prevent a lawsuit include:

• Implement a daily construction diary to document interruptions, additional costs and other problems.

• Make sure all workers understand the importance of documenting their work.

• Promptly notify the owner in writing of any circumstances that will increase costs.

• Thoroughly review all plan details before bidding on a job.

• Review all written contracts with a lawyer before signing.

Just by taking the time to plan ahead and follow basic steps, a construction business will be better prepared to avoid complications that could lead to costly legal disputes.

-- Jim Mall
Meyer Unkovic & Scott
jrm@muslaw.com

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