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How to avoid contract disputes for builders and contractors

When people want to remodel their home, they usually turn to contractors or builders. Here in Denver, Colorado, the relationship between a home owner and contractors is sealed by a contract that outlines the responsibilities of the contractors -- the length of time required to finish as well as the total costs. However, not all home repair or remodeling run smoothly. And when a home owner is not happy with the results, the owner often sues the contractors.

Contractors and builders know that a contract dispute often results in litigation, which is costly. To avoid this, they may follow some simple tips that can prevent contract disputes such as including a breach of contract clause in the contract. When the home owner and contractors meet for the first time, contractors should let the home owners know that they can be trusted. Giving them a sense of trust can be beneficial once the project starts. When drafting a contract, contractors should create a well-written agreement that outlines the responsibilities of both parties. Contractors should also ensure that the home owner understands what is written in the agreement. By doing so, both parties can hopefully, prevent a dispute.

Once home repairs have started, it is important for contractors to communicate with the homeowner regularly. Maintaining healthy communications with the client can ensure that their wishes on the project will be followed and to ensure that everything is going according to plan. In the event of a contract dispute, contractors or builders should try to resolve the issue through mediation or negotiation. It is important not to take the case to court in order to avoid costly litigation.

If the case can no longer be settled through alternative methods, litigation may then be the best solution. In such cases, legal representation is needed in order to protect the best interests of the company.

Source: Fox Business, "How to deal with a bad contractor," Donna Fuscaldo, Sept. 3, 2014

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