fbpx

Mitigating Risk Through Effective Contract Documentation

The method GCs use to develop, and document contracts can be the breaking point for a construction company and its projects. There may be thousands of activities and essential details that must be documented well to protect project participants – from daily logs to field reports, meeting minutes, and change orders.

Rather than relying on pen and paper and overflowing filing cabinets, GCs need to implement technology where they need it most: documentation. We are not just talking about the forms themselves, but all of the information associated with the formation of the document itself – precisely what is said during the negotiation and the metadata.

The issue is that most technology companies don’t offer GCs solutions that help – or even prevent – the litigation process, an inevitability almost every general contractor has to face at some point in their career.

Lack of proper documentation in the litigation process can be a company’s ultimate downfall. If there is no context behind the terms in a contract, litigation can quickly turn into a battle of “he-said, she-said,” ultimately eliminating the validity of each party’s claims. These disputes can soon turn into hundreds of thousands, if not millions, of dollars in litigation costs.

The Impact of Contract Disputes:

Contract disputes can negatively impact earnings, even in the best of times. Granite Construction recently announced it would miss revenue estimates by $60 million. James Roberts, CEO of Granite Construction, stated that contract disputes played a significant factor in the situation.

To avoid a lengthy and expensive litigation process, GCs must invest in their infrastructure for managing contracts and performance documentation.

How RedTeam Reduces Litigation Through Contract Documentation:

Construction management software is typically developed by people who think they know what the industry needs, but they’ve never spent a day on a job site. RedTeam was developed by construction professionals to solve real-world challenges faced by contractors.

Traditionally, contracts developed through construction enterprise resource planning systems are made offline and later uploaded to make the finalized document easier to locate. However, with RedTeam, general contractors can negotiate and even execute contracts online.

Because everything is captured online, general contractors and all other parties using the platform can track metadata to save money and time that would have been previously wasted with more traditional procedures.

In addition to reducing litigation through its contracting process, RedTeam’s cloud-based technology makes it easy to collaborate both in the office and in the field, allowing GCs and partners to update necessary plans and contracts in real-time.

Few technology companies have developed these tools from a contractor’s perspective – until now. While construction comes with its risks, having the right contracting and documentation methods can help mitigate them. Through the use of RedTeam’s collaborative software, general contractors are equipping themselves with the necessary tools to reduce litigation and stay on top of all that is happening on a construction site.

Conversations with General Contractors

Staying Safe on the Jobsite

Staying Safe on the Jobsite

Every day when we walk onto a job site, we know what’s on the line.…
Construction Payments with Levelset

Construction Payments with Levelset

The construction industry is plagued by slow payment; a well-documented problem making payment slower in…
The Importance of robust Construction Project Financial Management

The Importance of robust Construction Project Financial Management

Cash flow management is mission-critical for every construction company. Annette Bain will join us to…

What Redteam Users are saying

Trusted by over 100K RedTeam Users and leading companies in the Construction Industry.

Manage Your Projects With Us Now.

small_c_popup2

Make the most of your marketing efforts.

Free Ebook: 6 Pro Tips to Market Your Business.