5 ways to reduce likelihood of litigation

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5 ways to reduce likelihood of litigation

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While construction managers and contractors hustle to get project logistics in order to begin work on time, many neglect to reevaluate the multitude of factors that have hindered successes, or even led to more serious ramifications, in the past. Though disputes and delays can be common occurrences in commercial construction development, leadership shouldn’t ignore opportunities to better prepare and address the likelihood of litigation arising from their projects.
By examining team culture, operations, and previous work, construction partners put themselves in better position to learn from past mistakes and improve outcomes moving forward.
It’s not uncommon for people in general to assume that some of the negative experiences others have faced won’t happen to them, but being surprised by litigation can cost a lot of money on top of plenty of aggravation. Construction in particular experiences this problem, with Project Managers often bidding using the most optimistic schedules and budgets even though experience might tell them the work will run differently.
Here are 5 areas construction partners should target to strengthen preparations as their teams prepare for their next project:
1 Review Past Projects
The first step in identifying recurring work issues is evaluating past projects. Analysis can help shine a light on areas of weakness that persist and focus leadership’s attention to target improvements. Rather than hoping for the best on the next project, take a proactive approach to better performance using the information already available.
2 Evaluate Team Culture
Company culture determines how well individual team members perform because it helps to define clear expectations and recognize a collaborative approach to results. Yet many leaders fail to establish a particular culture for their team. The ways people work together, report problems/changes and express their needs can either limit growth potential or foster it.
3 Reexamine Contract Parameters
Much of the language in contracts is treated as standard, but not every aspect of the details needs to be a foregone conclusion. Understand if contract provisions have led to miscommunications or if revised parameters will improve outcomes for all parties involved in a project. Either way, a clearer understanding of agreements will help the team maximize its effectiveness and avoid extraneous disputes. In other words, don’t have a first look at the fine terms after you have a problem.
4 Define and Foster Usage of Communication Channels
A wide range of topics can be cause for team members to need to contact a supervisor, but actively or passively discouraging communication will undoubtedly lead to bigger problems with a project. Whether there is a block in the chain of command, repercussions for identifying pitfalls or unclear expectations for work or rules, when employees feel discouraged, leaders lack information. Conflicts and errors are far easier to address early before they manifest in a bigger way down the line.
5 Train Team Members for New Procedures, Technology & Equipment
After extensive reevaluation of operations and incorporation of the latest construction technology, team members will require new training so they can implement these changes effectively. Those who find themselves frustrated with new challenges will typically revert to the old ways of working so they can feel successful. By helping them to prepare for changes in the manner of planning and documenting the work, leadership helps the entire organization to prepare for more successful outcomes.
BIO
Jeff Kozek is a member of the Pennsylvania and New Jersey Bar Associations, including the Construction Law Section of the NJBA and the Public Contract Law Section and Forum Committee on the Construction Industry of the American Bar Association, and a Certified Forensic Claims Consultant. He is one of the founding Principals at Resolution Management Consultants, Inc. (RMC), a nationally recognized consulting firm formed in 1993 by veterans in the construction, contracting and engineering professions and headquartered in Marlton, NJ. RMC has assisted numerous private owners, public agencies and contractors in either achieving project goals through planning and management or resolving cost and time disputes between the contracting parties that can arise during litigation.
Website: resmgt.com
LinkedIn: linkedin.com/company/ResolutionMgt

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