Disputes arise over construction projects for many different reasons and our blog has delved into this topic carefully. However, those who run a construction business encounter all sorts of other issues, such as disputes with subcontractors. As with other construction disputes, a disagreement with a subcontractor may surface for all sorts of reasons. For example, the scope of work is a common cause of disagreement. In some instances, a subcontractor may bid for a portion of a project, while a contractor was under the impression that a larger portion of the project was included in the bid.
Another common reason why contractors and subcontractors become involved in disputes involves payments. For example, a subcontractor may claim that they were not paid properly (or at all), even though payments were made in full. If you have found yourself in a dispute with a subcontractor, it is pivotal to approach this issue cautiously. From your reputation to financial consequences associated with an unsuccessful outcome in court, your life and business may be adversely impacted by these disputes in various ways.
Sometimes, disputes with subcontractors can be taken care of by discussing the issue at hand and trying to reach an agreement. However, many contractors are simply unable to resolve these disputes amicably and legal action is unavoidable. If you are getting ready to go to court, you should know your rights and have a clear understanding of the best approach. Our construction law and defects section goes over more issues related to disputes involving subcontractors.