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Common Mistakes Employers Make That Cause Disputes
It is commonplace for employers to make numerous mistakes on projects that can often lead to unnecessary disputes.
Proceeding with variations before time and cost are agreed upon.
It is not unusual for variations to occur on projects, which may be due to additional or changed requirements by the employer and/or contractor, or due to external factors which were unforeseeable by the parties prior to formalisation of the contract.
When the need for a variation arises, decisions are often required to be made by the parties as quickly as possible, in order to minimise or negate potential impact(s) to the progress of the project. This in turn can lead to a scenario where the varied works are carried out prior to the parties negotiating and/or agreeing any time and/or cost implications.
Contributed by Garry Crossley, BSc, LLB (Hons), MBA, MRICS, Navigant Consulting (APAC) Pte Ltd