How Subcontractors Can Avoid Construction Disputes

By Brian Poage, Senior Construction Support Manager at Raken

The biggest threat to completing most construction projects on time and within budget are disputes. Whenever there is a miscommunication between project stakeholders, valuable time and resources must be spent to resolve it.

Global consulting firm HKA recently reported that disputes cost construction companies an estimated $73 billion in claims worldwide in 2021. They may seem unavoidable, but there are ways to mitigate risks and protect your business in the event a dispute arises.

Common Reasons for Construction Disputes

The most common construction disputes involve changes in project scope, misinterpretations of contract, incorrect or incomplete designs, poor project management, or unpredictable physical conditions that prevent work from being completed as scheduled.

Nearly all of these issues could be improved or even avoided with better communication. But how can subcontractors work on building good relationships with project stakeholders when they’re focused on daily tasks?

The answer lies in documentation. The quality of day-to-day jobsite reporting plays a major role in avoiding disputes.

Documentation of daily progress should be:

●     Detailed, consistent, and accurate

●     Clearly communicated with all members of the project team

Details Matter

Detailed reporting helps mitigate common risks by painting a clear picture of what’s happening on the jobsite each day. When subcontractors clearly and accurately document their work, they can monitor progress, catch potential issues early, and respond quickly to unforeseen problems or delays.

Good documentation keeps field crews more compliant and productive.

Communication is Key

Consistently sharing reporting data with general contractors, customers, and other stakeholders helps them stay informed and engaged. Disputes are less likely when everyone involved with the project has clear visibility into daily progress and can bring up concerns before they develop into bigger problems.

When they clearly and effectively communicate, subcontractors can also prove that every effort is being made to complete work safely on time. They can set expectations and build trust by keeping general contractors in the loop

There are several ways contractors can improve the quality of data collected by the field and enhance communication with stakeholders without increasing already busy workloads.

Digital Reporting and Time Tracking

One of the easiest ways for subcontractors to improve documentation is to implement digital daily reporting software. Digital reports are faster, more consistent, and more accurate than pen and paper, and they lead to far less communication errors.

Using digital daily reporting software, subcontractors can easily capture and share data from the jobsite using mobile devices. And, because the data can be templated, general contractors and other stakeholders won’t lose the details in translation.

The same concept applies to time tracking. Digital time cards let subcontractors easily track hours to specific tasks onsite and provide granular visibility without the manual data entry required by pen and paper.

Project managers can review time data to adjust schedules as needed and inform stakeholders.

Automation

Some reporting technology automatically publishes daily reports into a clear, easy-to-read PDF format that can be distributed to stakeholders within the app or software. This helps subcontractors communicate more efficiently through a single channel.

Photo and Video Documentation

Including visual documentation like pictures and videos with daily reports helps construction crews on and off the jobsite. Subcontractors can compare photos to design plans to visualize the completed project and ensure designs were drafted to the correct specifications, while project managers can gain the best visibility they’ll have without being onsite all day. Visual data can highlight potential concerns and prevent rework.

Photos and videos that are automatically time and date stamped can also act as proof of progress. Show exactly what the jobsite looked like at specific times to definitively resolve disagreements.

Cloud Storage

Storing documentation on the cloud allows teams to instantly share reporting data. Real-time insights help subcontractors respond to potential changes in scope without costly delay.

Stakeholders can also review information as it’s uploaded and access all historical data in one convenient location. If past reports must be reviewed to resolve a dispute, they can be easily searched and located.

Integrations

The best reporting and time tracking solutions will integrate with other software systems for accounting and project management. Sharing information between programs further cuts down on the need for time consuming manual data entry and duplication of information.

Mitigating Risk

Preventing disputes and mitigating risks is all about providing project stakeholders with clear, consistent information from the jobsite. Not only does enhancing documentation and communication help subcontractors build good relationships with general contractors and customers, it also helps internal teams get projects done safely on time.

While not every subcontracting business needs to invest in the most cutting edge technology available to improve daily reporting to help avoid disputes, construction companies of all sizes can reap the benefits of digital reporting and time tracking tools. The real-time insights, clarity, and visibility these tools provide greatly minimize the risk of communication errors.

Despite efforts, some construction errors are unpredictable and unavoidable. But, even when a dispute occurs, better documentation and communication can help subcontractors protect their business and quickly reach a fair resolution.

Brian Poage started his career with Turner Construction Company and worked as a Field Engineer, Project Engineer and Superintendent. After Turner, he transitioned to a Project Manager role for the developer Holland Partner Group before becoming a Project Manager for WeWork. A former Raken customer, Brian was impressed with the field team’s adoption of the platform and ability to leverage project analytics to improve their management—so he joined Raken to help other construction companies find the same real-time insights.