Contract dispute, what can cause one?
Contract dispute, what can cause one? When drawing up an initial contract between businesses, there are a lot of different areas that need addressing including time limitations, payment, equipment etc. Although getting these components organised at the beginning can reduce the risk of a contract dispute there is still the chance something will go wrong – but what should you be on the lookout for?
Firstly, one of the main areas is out of your control; Mother Nature. Like the disastrous flooding in Somerset, you cannot foresee what will happen during construction. This means there will have to be some leniency on both sides of the contract if adverse weather conditions are putting a halt to the project. If something out of your control halts construction and one side of the contract is not being cooperative, the best way to solve this dispute is to talk and provide evidence of why the work cannot go ahead.
Another area to watch for is who you’re working with. Make sure you research the company to ensure that they have got a solid background and that they are trustworthy. Looking at their history will hopefully give you an idea of how they work and what they expect from a contract. If you have gotten into a contract with a company who may not be pulling their weight or meeting the terms you both agreed to, talk first; action later (if needs be).
Tied to who you work with, you must ensure the work conditions are met with. Health and safety is a massive contributor to contract disputes, yet it is one of the easiest things to get right. By ensuring that all health and safety conditions are met you should be able to avoid the danger of this happening. Health and safety disputes usually result in bringing in a third party mediator.
While business owners do work tirelessly to avoid all disputes such as these, contracts are incredibly complex and there are a series of extraneous circumstances that can arise. Remember it is always best to talk it through first with your partner company but there are third-party companies who can offer assistance in solving disputes.