How do you handle litigation risks as a construction company?

 Posted on June 23, 2022 in English

Litigation is a risk in any industry, and construction is no different. While you can never guarantee it will not happen to you, there are things you can do to reduce that probability.

The first thing is to understand where it might come from. The short answer is almost anywhere. Clients, suppliers, sub-contractors, employees, the general public or governmental agencies could all find a reason to sue.

Here are some steps you can take to protect yourself:

Maintain high safety standards

You are less likely to face an injury lawsuit when you prioritize safety. Remember, your duty is not just to those working on your site. You must also consider those who pass by, have reason to visit, or even in some cases, trespass. Your liability does not stop once your work is finished either. If something you build later injures someone, that too could land you in court.

Supervise

If it's your name on the contract, it will be your reputation on the line if something goes wrong. While you should choose people you trust to work with, you still need to check up on them.

Document everything

The more detailed your paperwork, the more likely you have the evidence you need to counter a false claim. If a client insists on a particular material or method despite your protests, get it in writing so they cannot say you never warned them when it fails.

Getting legal help early on can help you make construction litigation less likely. If it happens anyway, you can find out more about what to do next.