Careful Documentation Matters in the Construction Business

Obviously, the written content contained in commercial contracts is essential to how you run your business. However, in many cases, construction contracts are made orally. Based on any reasonable assessment, an agreement made over the phone or in person is actionable. However, if a conflict arises regarding the terms of your partnership with or work for another business or contractor, you may be in trouble.

There are a number of things that can go wrong when you do not communicate in writing in the construction business:

• The person or subcontractor you made an agreement with no longer works for that group, making your agreement null and void
• The person or subcontractor made an error and requires services/products that are different than those rendered, wasting time and money for both parties
• There may be complications with the site conditions or other reasons for a delay in rendering the agreed-upon services

If you are running a business, you probably spend a lot of time talking to contractors, subcontractors, and other people face-to-face or on the phone. Whenever you make an agreement regarding provision of a service or product, following up with an email verification is always a safe way to ensure the enforceability of your oral contract and a great way to make sure you don’t get bogged down in an unnecessary legal dispute. For help forming a commercial contract, legal counsel for your construction business, or other legal services, get in touch with a member of our team right away.