Construction litigation is a common problem in the construction industry. It refers to legal disputes that arise during or after a construction project. These disputes can be very costly, time-consuming, and stressful for everyone involved. MySmartPlans created a Litigation-Proof Solution, read below to see how it works.

The Top 7 Reasons for Construction Litigation

1. Contract disputes

Issue: Contract disputes are one of the most common reasons for construction litigation. These disputes can arise due to many factors, such as inadequate specifications, delays, changes in scope, cost overruns, and more. When any of these issues arise, it can lead to disagreements between the parties involved and ultimately to legal action.

Solution: Every project document is audited by our Digital Information Librarians. If a contract has missing information, an incorrect address, or a subcontractor’s license is out of date; we find and ensure all these issues are corrected before the project starts and keep them up to date throughout the project.

2. Delay claims

Issue: Delays are another common issue in construction that can lead to litigation. These delays can be caused by various factors, such as poor planning, weather conditions, labor shortages, material defects, and more. When these delays occur, they can cause significant financial losses to the parties involved, leading to legal action.

Solution: Complete audited documentation and correct mistakes throughout the build reducing delays. With auditing documentation, all files are uploaded to one integrated spot, organized, and searchable. Complete transparency and documentation eliminate the need to move toward litigation.

3. Construction defects

Issue: Construction defects are another common reason for litigation. These defects can range from small cosmetic issues to more serious structural problems. When these defects are discovered, it can lead to lawsuits, as the owner may seek compensation for the cost of repairs, time lost, and other damages.

Solution: If a build issue is not caught during the project (when using MySmartPlans this is incredibly rare) we create a searchable closeout guaranteed to access all project data for 50 years after the project is completed. Repairs, improvements, and maintenance are easier and cost-saving with our free closeout turnover.

4. Design errors

Issue: Design errors can also lead to construction litigation. These errors can occur at any stage in the design process and have significant consequences, such as delays, increased costs, and safety hazards. When these errors are discovered, it can lead to legal action against the designer or design team responsible.

Solution: Our Digital Information Librarians comb through every set of drawings and specs and send mistakes back to the architect before they go to bid, or are sent to the project site. All details, RFI’s, ASI’s, and Addendum are linked to the original set of plans along with color sheet comparisons. If there are answers, new sheets, updated details, etc., those on the job site will know exactly what has changed in real time.

5. Payment disputes

Issue: Payment disputes are another common reason for construction litigation. These disputes can arise when there is a disagreement over the amount owed, payment timing, or changes in the scope of work. When these disputes occur, they often lead to legal action, which can be costly and time-consuming for both parties.

Solution: All documentation is collected by MySmartPlans (can be secured so only certain parties have viewing access) and our Digital Information Librarians constantly do quality control checks ensuring documents aren’t missing. The DIL will reach out if there is a missing invoice, change order, or pay app and locate that file to be included.

6. Personal injury claims

Issue: Personal injury claims can also lead to construction litigation. These claims can arise when workers or third parties are injured on the job site due to unsafe working conditions, negligence, or other factors. When these claims are made, it can lead to significant legal and financial consequences for the parties involved.

Solution: Having current and correct data at their fingertips prevents workers from needing to be on the job site searching for the latest documentation in disparate systems. We also recommend using MindForge for on-the-site connectivity to ensure all safety issues or notices are sent to those on the field, daily.

7. Environmental issues

Issue: Environmental issues can also lead to construction litigation. These issues can arise when there is contamination or damage to the environment during or after the construction project. When this occurs, it can lead to legal action against the parties responsible for the damage.

Solution: Having full documentation ensures that the project is run correctly. If there are environmental issues all data is accessible to get the environmental factors investigated and corrected in a timely manner.

In conclusion, construction litigation is an unfortunate but common problem in the construction industry. To avoid these issues, it is essential to have clear contracts, effective risk management strategies, and complete documentation shared between all parties involved in the construction project.

Ensure your project will be protected from litigation by using MySmartPlans Litigation-Proof Solution.

Contact us today!