Disputes in the construction industry are common. Parties often fall out about the standard of workmanship, payment for variations and/or delays to the project amongst other things. The result of a dispute may be that the development or renovation is left unfinished or, if the project was completed, that the contractor refuses to return to rectify defects. Rebecca Huston considers the position in the absence of a contract and the benefit of properly documenting matters.
It is often the case that when acting for a private investor or landlord who has fallen out with his contractor, that there was no adequate written 'contract' to speak of in place and so it can be difficult to show that the contractor was in breach. Care should always be taken when starting work based on acceptance of the contractor's quote alone as it is often the case that only the basic points of what will be done, when and for how much, are covered. If things go to plan this may be sufficient. But when they don't the developer may be left in a situation where he has contracted for one thing but thought he was getting something more.
It is not uncommon for contractors to allege that matters a developer believed should be included as part of the works were additional items, or that the developer has caused a delay for which the contractor should be entitled to additional time to complete and any additional costs that flow. There may also be questions as to the standard of workmanship or the quality of materials used.