Businesses work with contractors all the time, so it's not surprising that contractor disputes arise fairly often.
Disputes of any kind take time and money away from running a business. That's why it's so important to know how to avoid a contractor dispute before they happen.
Business owners and employers can avoid contractor disputes by using the following tips:
Create a written contract that outlines all the work that will be down, the payment plans, the expected dates of completion, the cost estimates, and any other important terms. All expectations should be hammered out in the contract, nothing should be left as a verbal arrangement. This keeps the relationship between the owner and the contractor professional. These contracts will hold up in court, so both sides have an incentive to follow them.
Business owners should communicate with the contractor and their managers about the progress of a project. They should create an arrangement where they receive the updates however often they would like them. This will reduce the number of disputes over when parts of a project will be completed.
Communication is also key when it comes to unexpected issues arising. Even the most experienced contractors run into unexpected problems. By keeping the communication channels open and professional, a contractor will feel comfortable explaining the issues and what they'll need in order to quickly and efficiently resolve them. Without this communication, the problems may be dragged out and cost additional money. Business owners should be flexible when it comes to projects. Unexpected events are not unusual, and contingency plans may be needed just in case.
If a dispute is unavoidable, think about the various dispute resolution processes that are available. Mediation is a quick and cost effective solution for many businesses. Bringing a neutral third party to mediate the situation may prove worthwhile. Business owners should expect to have to compromise on some matters in exchange for time and money. If mediation does not work out, arbitration and litigation may be needed.
Working with an attorney may save a business owner time and money in the long run. They can ensure the legality of the contracts being signed and can they advise business owners on terms and conditions of a contract.
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