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2 common reasons general contractors face lawsuits

On Behalf of | Apr 8, 2020 | Firm News |

As someone who makes your living working as a general contractor, you probably recognize the fact that construction is a complex industry and that there are many different areas in which things might go wrong. If you are not careful, a lawsuit filed against you could, at best, cost you considerable money, and at worst, it could potentially cost you your ability to continue to work in the construction industry. 

Arguably your strongest line of defense against lawsuits is to take certain preventative measures to prevent them. To do so, you need to fully understand the circumstances under which general contractors often face lawsuits, and the Farmer Brown Insurance Agency outlines several of the most common reasons contractors find themselves embroiled in construction-related litigation. More specifically, you should, as a contractor, take steps to prevent: 

Breach of contract allegations 

Many lawsuits filed against general contractors stem from contract issues. Maybe a customer alleged that you failed to respect the terms and conditions of the contract you had in place, or maybe a customer believes your work failed to live up to expectation. By exercising extreme care when wording and drafting your contracts, you may be able to avoid many lawsuits alleging breach of contract. 

Internal conflicts involving employees 

Sometimes, general contractors find themselves the subject of lawsuits when employees feel their job duties far exceed what employers told them they should expect upon hiring. You may be able to avoid these types of lawsuits to some extent by being extremely transparent about what you expect from an employee and making sure he or she fully comprehends those expectations. 

Taking steps to reduce your chances of a lawsuit is critical when you work as a general contractor. Otherwise, a single incident may place your business and all related assets in jeopardy.