After having a long facetime conversation with my pal over at Gary Pools, he goes to explain to me that generally, the world keeps getting litigious especially in the real estate and commercial construction industry. Litigation and claims are almost inevitable in construction projects. The involved people and projects may change. However, disputes and issues that surround construction projects are consistent. Here are some of the reasons why construction keeps getting litigious.
Extensive Involvement of Subcontractors
In the pasts, general contractors claimed to have the necessary skills to handle all construction works. They self-performed different kinds of jobs. Therefore, being efficient was basically in their best interest. Litigations and claims were minimal because general contractors managed different aspects of construction projects and they aligned activities with the goals of their projects.
However, this is no longer the case. Today, contractors are involving subcontractors in almost every aspect of the construction project. This means different people are working on different aspects of construction. This causes inefficiencies, delays and additional costs.
Some construction projects have poorly-coordinated designs. These create conflicts and delays which come with added costs. Unexpected costs and delays lead to litigations when not resolved properly. Complete and accurate designs make construction less litigious. But, a poorly coordinated design leads to unreliable and unrealistic estimates that are bound to change. This leads to impact damages and claims for the delays. As such, misunderstandings caused by poorly-coordinated design lead to litigation.
Inadequate Project Data
Inadequate project data and inability to study the date is also a reason why construction keeps getting litigious. Lack of information can lead to costly problems especially if the data is not analyzed properly. It can lead to unwanted arguments and eventual disputes. Without the right, well-analyzed and organized data, proving that you deserve compensation is not easy. This can lead to more disagreements that make construction litigious.
In addition to these factors, increased competition is also a cause of litigations in the construction industry. To avoid litigation, work with a reputable contractor that wants to ensure successful completion of your construction project.