How Can I Mitigate Legal Risks in Construction Projects?
You never want to run into legal troubles during or after your work on a construction project. Unfortunately, this is a dangerous and litigious industry, and that means that you really need to be diligent and look out for yourself and your company on every project. That means looking for all potential legal risks and doing everything that you can to protect yourself from them. This advice from our Houston construction litigation lawyers might help.
What Kinds of Legal Risks Do I Need to Think About in Construction?
On every construction project, you need to be able to identify and evaluate all types of legal risks. You should be on the lookout for:
- Safety risks that can lead to injured employees and lawsuits
- Potential for broken contracts or agreements
- Operational risks, like delays and equipment failures, that can lead to lawsuits
- Financial issues that can result in litigation, like late payments or potential liens
Any of these can be legal risks that can result in litigation and a cut in your profits.
How Should I Respond to Potential Legal Risks?
When you can identify potential legal risks, you then have to decide how acceptable the risks are. How likely is this to be a problem? If there is a problem, how much of a loss can it lead to? Could there be consequences of varying severity based on other factors or realities of the job?
Once you have evaluated how risky these elements are, you can decide what to do. You can deem the risk an acceptable part of the job. You can avoid it by changing your contract or the scope of your work so that the potential risk no longer affects you. You can also make preparations to deal with a potential risk. This could mean making preparations to file a lien if someone doesn’t pay or taking out a bond that could protect you, your company, and your assets if there’s a problem.
How Can Contracts and Agreements Help Me Minimize Risks?
The contracts you draw up can also help you avoid some legal risks. You want contracts to be clear, concise, and specific about what your duties are. We always recommend having a legal professional look over any agreement you make, whether the job is big or small.
How Can Workers Help With Risk Mitigation?
If you’re the head of your company, you’re not the only one who should be on the lookout for potential legal risks. You should train your field personnel to spot lawsuits that are waiting to happen. Working together with your team can make it easier to safely handle a project without the need for litigation.
Contact Our Construction Lawyers
If you have questions about construction contracts, litigation, or anything else related to the legal side of this industry, we can probably help you. Contact Patout & Shaw to schedule a consultation with our team. We would be happy to tell you more about what our seasoned construction attorneys can do for you.
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