Why Is Legal Knowledge Important in Construction Management?
In the construction field, many contractors, subcontractors, suppliers, and investors often coexist on the same project. The only way to handle all of these concepts is to put everything in writing. Now, while contracts are your first and last line of defence, the truth is that they’re not all-powerful, nor do they cover everything that takes place on the project. You won’t be able to predict every single construction dispute, and establishing who the guilty party is can sometimes be more difficult than you expect.
The only way to protect yourself is to understand all the legal processes that go into construction management. Now, this doesn’t mean being the lawyer yourself but just possessing some basic understanding of what’s going on. Ideally, you would have your lawyer/legal team whom you can contact in these matters. With that in mind and without further ado, here’s why legal knowledge is important in construction management.
1. Property lines
This is easier to overstep than you think. This is one of the biggest problems in construction that’s seemingly easy to avoid, yet, some still fail to make an effort. The key is that you can just look at the zoning laws and property lines, but you need this information from an official source. This is the only way to ensure that you’ve got everything right. Hiring a professional surveyor is probably the best course for those who want to ensure that they’re not overstepping their boundaries.
While this may seem like a simple enough issue, it can become legally grey once it gets to the buildings that start on one property and impact another. This is why it’s so important to consult construction lawyers in advance.
2. Payment disputes
There are so many different active payment models for a single construction project. Your construction crew is possibly paid weekly or bi-weekly, your suppliers are paid per delivery, and you probably have a different contract with each of your subcontractors. With such a complex payment system, payment disputes are frequent.
Now, the role of seasoned construction lawyers is not just to help you settle these disputes. They can also help tweak your current contracts to reduce a chance of such a dispute arising in the future. Remember that this also includes employee benefits, making the entire situation even more complex.
3. Employee disputes
People in the construction industry are often described as resourceful, tough, and resilient. They are also sometimes vain, too proud, or even outright stubborn. In such a testosterone-infused industry, inter-staff disputes are just a matter of time. As a project manager, you need to ensure that these disputes are resolved peacefully, quickly, and efficiently. You need everyone to be back at their post both to avoid an injury and stay on schedule.
Still, how do you intervene without overstepping your boundaries? What are you allowed and not allowed to say? While this may sound like a task for HR, the truth is that it’s a legal matter, as well. A good lawyer can help review your construction policy and ensure that you remain in compliance with all the relevant regulations.
4. Design lawsuits
One of the issues that you don’t hear a lot about is design lawsuits. This, however, doesn’t mean that they’re either rare or non-existent. You see, a marvelous design might be a plagiarized work of another architect. This is a serious issue at the crossroads between construction law and IP law. This is exactly why you need a lawyer to untangle it.
A construction lawyer is there to defend your lawsuit. Even in a situation where the similarity is undeniable, a good construction lawyer can help you prove that it was unintentional. This can make a difference between being allowed to continue your work and the project being halted in its entirety.
5. Insurance
While personal insurance is something you pay for in hopes of never having to use, in the construction field, it is one of the most important legal requirements. You see, an inspection may arrive unannounced to check your insurance coverage (as well as whether it’s up to date). In a scenario where it’s exceeded, you would potentially be in a world of trouble.
Even the act of God events (floods, earthquakes, wind damage, fire) can be insured against. An experienced lawyer can advise you on the area you’re working with and suggest which insurance you just can’t do without.
6. Preparing for workplace injuries
One of your most important tasks is to prepare for workplace injuries. Sure, your safety guidelines may be perfect and your intentions pure, but you can never predict every single accident. Having a good construction lawyer on a retainer will help you be ready for when the accident occurs and ensure that you avoid any blunders made early on.
Shielding your company while remaining fair to your injured employees is one of your most sacred duties as a construction manager. It’s also what separates good construction companies from the bad. In general, to avoid an injury or reduce its impact, you need a professional, regardless if it’s a hot water specialist or a construction lawyer.
In conclusion
The last thing you should bear in mind is that you, as a construction manager, need a construction lawyer and strong business insurance every step of the way. Even if the contract is good, you need someone to confirm it. A construction lawyer is not just there for the moments of crisis; they’re an essential part of your team.