How do you manage and mitigate the risks of construction claims and litigation?

1 Know your contract

The first step to avoid or minimize construction claims and litigation is to have a clear and comprehensive contract that defines the scope, schedule, budget, quality, and responsibilities of each party. The contract should also include clauses that specify how to handle changes, delays, defects, disputes, and remedies. A well-written contract can prevent misunderstandings, ambiguities, and conflicts that may lead to claims and litigation. However, a contract is not enough if it is not followed and enforced. You should also monitor and document the performance and compliance of all parties, and communicate any issues or concerns promptly and professionally.

2 Manage changes and delays

Changes and delays are inevitable in any construction project, but they can also be a major source of claims and litigation if they are not managed properly. Changes and delays can affect the scope, schedule, budget, and quality of the project, and may result in claims for additional compensation, time extensions, or damages. To manage changes and delays, you should have a clear and agreed-upon process for requesting, approving, and implementing changes, and for assessing and granting time extensions. You should also keep track of the impact of changes and delays on the project, and document any agreements or adjustments made. Moreover, you should try to anticipate and mitigate potential risks and issues that may cause changes and delays, such as weather, labor, materials, design, or regulatory factors.

4 Learn from case studies

One of the best ways to learn how to manage and mitigate the risks of construction claims and litigation is to study real-world examples of construction disputes and how they were resolved or avoided. Case studies can provide valuable insights and lessons learned from the successes and failures of other projects and parties. For instance, you can learn how to avoid common pitfalls and mistakes , how to apply best practices and standards , how to use effective strategies and tactics, and how to leverage your strengths and opportunities. You can also learn from the perspectives and experiences of different stakeholders, such as owners, contractors, consultants, lawyers, experts, and arbitrators.

5 Improve your skills

Finally, you can improve your skills and knowledge as a construction supervisor by taking advantage of various resources and opportunities available to you. You can enroll in courses, workshops, seminars, or webinars that cover topics such as contract management, change management, risk management, dispute resolution, or claim analysis. You can also join professional associations, networks, or communities that offer guidance, support, or mentoring to construction supervisors. You can also read books, articles, blogs, or newsletters that provide updates, trends, or tips on construction supervision. By improving your skills and knowledge, you can enhance your competence and confidence as a construction supervisor, and reduce the likelihood and impact of construction claims and litigation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?