Contract violations and unmet expectations are frequently the underlying causes of construction litigation. Clients disappointed by the finished product may take legal action against construction companies or professionals seeking corrections to the work performed or even an award of damages.
Sometimes, the source of a client’s dissatisfaction is largely outside of an organization’s control. Supply chain issues have regularly disrupted construction projects over the last half-decade. They can be the result of government policies, civil unrest, inclement weather and other uncontrollable factors.
How do issues acquiring specific materials for construction projects increase the likelihood of a client pursuing construction litigation?
Supply chain issues can cause project headaches
There are a handful of ways in which supply chain problems can disrupt a construction project and cause client dissatisfaction. The first is by increasing the timeline for project completion. Needing to wait indefinitely to acquire structural steel or a specific type of tile could leave a client in limbo, unable to move back into their residence or to begin working at a new business facility.
The second issue relates to project costs. Supply chain issues may make it much more expensive to conform to the client’s requests. Construction companies may expect clients to cover the difference in costs, which could anger clients.
The final issue relates to material substitutions. Clients might allege a contract violation after a material substitution, especially if they did not approve of the substitution or did not receive advance communication about it.
Construction firms and professionals can protect themselves by integrating the right terms into contracts and communicating proactively with clients about supply chain issues. Responding effectively to construction disputes and litigation can help companies preserve their capital and their reputations.