How can contractors prepare for potential disputes?

Contractors can effectively prepare for potential disputes by keeping detailed records. This practice establishes a clear documentation of all communications, agreements, change orders, payments, and project timelines, which can serve as vital evidence in the event of a disagreement. Detailed records help clarify the intentions of both parties and can provide a factual basis for resolving misunderstandings or disputes that may arise during the project.

When contractors maintain thorough documentation, they can demonstrate compliance with contractual obligations and provide proof of the work completed, which is crucial when defending against claims or pursuing payment. This diligence not only supports the contractor's position in a dispute but also fosters trust and transparency in business relationships, potentially reducing the likelihood of conflicts occurring in the first place.

In contrast, ignoring minor issues, avoiding written contracts, and relying solely on verbal agreements can lead to ambiguities and misunderstandings, creating environments where disputes are more likely to arise and harder to resolve.