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4 ways contractors can reduce legal risks and improve reputation

On Behalf of | Apr 8, 2023 | Construction Law |

More Americans than ever understand their rights and stand ready to protect them. While it is good to have a well-informed population, it may increase the risk of litigation for contractors and construction companies.

For example, if a homeowner of today feels you delivered substandard work, they are more likely to seek a legal solution than in previous eras. That means it is critical for contractors to do everything possible to lower their legal risks.

1. Ensure high-quality work

Before you hand completed projects over to your clients, ensure they meet or exceed expectations. The presence of construction defects and inferior craftsmanship can lead to litigation, a costly and time-consuming process. Another reason to demand high quality on every project is to minimize damage to your business reputation.

2. Avoid boilerplate contracts

A well-drafted construction contract can protect you from litigation. You may be tempted to use cookie-cutter contracts or recycle existing agreements from one client to the next, but this is typically unwise. Contractors need legally binding documents drafted for individual projects. Sound contracts shield you from construction disputes, further preserving your reputation.

3. Check out subcontractors

When relying on outside parties like subcontractors to fulfill your construction contract, vet them carefully. If they make a mistake on the project or allow someone to get hurt, you may be on the hook for damages. Working with only reliable and skilled subcontractors adds another layer of reputation preservation.

4. Find legal representation

Even if you are not currently facing any legal issues, you may need to consider working with a representative. Obtaining legal help when drafting contracts may minimize reputation-harming legal risks. Learning more about the laws that govern Alabama construction projects is another way to protect your business operations.