The risks associated with the construction process
Various risks can arise during the construction process. These may include a client failing to pay an invoice or a contractor carrying out one or more works inadequately. In practice, written agreements between the parties are often missing. Clear written agreements set out in a contract can help limit many risks. Unfortunately, not all risks can be prevented through written agreements alone.
During a construction project, several parties are often involved. Consider, for example, the renovation of an older home. Different parties may be responsible for specific aspects of the building, such as installing electrical systems, fitting a new bathroom or painting the window frames. The agreements and arrangements made between these parties can quickly give rise to risks. Contracts may not be recorded clearly, or parties may interpret verbal commitments differently. In hindsight, it often becomes clear that misunderstandings could have been avoided through clear communication and by accurately recording the parties’ intentions.
First and foremost, it is important to work with clear general terms and conditions and well-drafted contracts. If everyone knows in advance what is expected of them, misunderstandings about the interpretation of unclear provisions can be avoided. Clear and explicit wording helps ensure that the text is understandable to everyone and interpreted in the same way.
Once the arrangements have been clearly formulated, the agreements made should be carefully recorded. This may include agreements concerning completion dates or a verbal commitment regarding the price. The agreements are also highly relevant when work has been carried out inadequately. The key question is: what exactly did the parties agree? If the work delivered does not comply with what was agreed, this may constitute a breach of contract.
When work has been carried out inadequately, it is important to raise a complaint in good time. It is also important to identify and document the defects in the work. This can be done through an expert investigation. In any event, the parties should bear in mind that the contractor must first be given the opportunity to remedy the defects and properly perform the agreement. In practice, however, this does not always proceed smoothly. In such cases, we recommend seeking legal advice.
Are you experiencing problems with construction work as a client, or are you a contractor facing complaints? Feel free to contact our specialised construction law lawyers in Heerlen at info@sijbenpartners.nl or on +31 45 560 22 00.
