Builders and Contractors Exchange
Weekly Bulletin: 01 May 2006
Top Ten Tips For Dispute Resolution Cost Control. Part 2 of 2
By: Michael L. Sterling
In last weeks article we outlined the first four ways to control dispute resolution costs. First and most importantly, all require you have a signed, written contract in place before starting work. The other tips discussed the following: 1) Assignment of Costs and Attorney’s Fees Incurred for Collections, 2) Choice of Law Provision, and 3) Avoidance of Arbitration on Large Claims.
This article will continue with some practical advice to help keep your collection costs down in the event of a dispute.
1. Waive Jury Rights. Consider including language in the contract in which the parties both agree to waive their right to a jury trial in the event the parties end up in litigation over disputes arising from the contract. Preparing for a jury trial causes collection fees to skyrocket.
2. Stop Working if Fees Remain Unpaid. Stay on top of fees owed and include language in your contract permitting you to stop all work in the event an account becomes more than, say, forty-five days past due. Keep standard letters on file that you can send to your clients reminding them of payments that are two weeks and four weeks overdue and that you will stop working. Include a provision in your contract allowing you to take your construction plans and documents once an account becomes more than forty-five days past due.
3. Require Notice of Fee Dispute. Include language in your contract requiring specific notice of a fee dispute within a set time frame or any dispute shall be waived.
4. Stick to the Terms of Your Contract. Enforce the terms and formalities of your contract in order to avoid an argument as to waiver of any provisions.
5. Retain Ownership Rights as to Your Plans, Specifications, and Contract Documents. At least until you are paid in full.
6. Insist on a Signed Written Contract. With a written contract, the terms of your agreement are spelled out in black and white. DO NOT work on a handshake. That is simply not the world we live in anymore. However, make sure your contract is clear and unambiguous. As the drafter, ambiguities in your contract are always held against you.
If these tips bring up any questions, or you need help drafting a contract of your own or reviewing a proposal by someone else, please do not hesitate to contact any of the Vandeventer Black attorneys. Good luck and GET PAID for your hard work!
Questions?
If you have any questions about this article or any other related matters, please contact:
This article is meant to bring awareness to this topic and is not intended to be used as legal advice.