2. With many parties involved and their inherent
dependencies, construction projects are
naturally prone to disputes. Most such disputes
are related to project management factors, such
as time, scope, and complexity. Before starting
a new project, make sure that you document the
following:
1. Scope: Documentation of scope helps to
separate contracted work from "extra" work,
which may require additional fees. A clearly
defined scope helps to eliminate ambiguity that
may be a source of disputes.
3. 2. Time: Make sure project start and finish
dates are clearly defined in the statement of
work, and include who may provide approvals
of work, if necessary.
3. Payment: Method of payment and payment
terms should be clearly outlined in the project
document. For example, progress payments
entitle the contractor to submit invoices based
on completion of milestones. Any discounts for
prompt payment should also be clearly stated.
4. ● About the author: J. Mark Brewer, president of
a legal firm, has more than 30 years of contract
negotiation experience.