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One-sided contracts can lead to litigation

Many business owners, through an honest desire to limit their company's liability, will include numerous provisions designed to limit their liability. The result is a one-side contract that places all of the risk on one or more parties. But this language will not prevent an injured party from seeking compensation. It will only drag out litigation and make the entire process more costly.

 

Too much language that tries to shield one party from liability may instead induce litigation. When a construction dispute arises it is because an unforeseen problem crops up. When a contract confronts an:

  • Inadequate plans.
  • Unforeseen or changed project condition.
  • Interference in work.
  • Changes in work conditions.

Any contractor will assume that they can compensation or assistance to deal with these issues. Any contract that attempts to limit this assumption will likely be litigated. A better option would be to incorporate and anticipate problems and to fairly allocate risk among all of the parties.

If you are involved in a complex construction dispute then you may want to retain an attorney. Ideally, these disputes should be avoided because everyone loses money and time to resolve them. But barring that, you may want an attorney with experience resolving these disputes quickly and efficiently. Many contract disputes can be avoided with open and honest communication. Keep that in mind when you draft your next contract, it could save you the time and effort of litigating a case.

 

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