Construction is one of the largest fields in Arizona and countrywide, as it creates employment for many people. For a project to be complete, different parties are involved – among them are contractors and material suppliers.
A contractor depends on suppliers to provide them with quality materials, and the latter depends on the former for projects. Thus, their relationship is crucial. Unfortunately, disputes can arise between them, which can cause a project to delay. This guide discusses how contractors can help manage such disputes.
1. Have a binding contract
Of course, a contractor should partner with a reliable supplier, with or without a contract. A material supplier should acknowledge they need to provide the agreed quality of products on time. However, in addition to a mutual understanding, it’s safe to have a legal document.
This ensures everything runs smoothly since each party knows what is expected of them and the potential consequences should they fail to act as required.
2. Communicate effectively
Excellent communication can create a good contractor-supplier relationship. For example, if a contractor has a new request, one not in the usual order, they should contact the supplier earlier to inform them. On the other hand, the supplier should do the same when facing difficulties that may lead to delays or any other issues. A contractor can determine how communicative a supplier can be.
3. Make payments on time
The agreement a contractor and material supplier sign will have a clause covering payment. The supplier will submit a notice within an agreed period, and the contractor will follow up with the project owner to process the payments. If anyone fails to do their part on time, disputes may arise. Upon receiving the notice, it will be best for a contractor to act accordingly sooner.
If you are a contractor in a dispute with your material supplier, you should consider your options to protect the project.