Construction projects are complex, and they’re often subject to unexpected delays and circumstances. While these factors can be frustrating, they don’t need to derail your project or put your company at risk of a claim. By planning ahead and properly managing potential risks, you’ll be able to avoid unnecessary claims and keep your projects moving forward smoothly—and on budget.

One of the most common contributors of construction claims is the hesitancy to spend the required effort to clarify the scope and terms of work during initial project phases. This often results in changes to design, scope, and schedule during construction, which can lead to a tidal wave of construction claims heading your way.

The second most common contributor is the unclear communication of contract intentions causing misunderstandings regarding the risks and responsibilities assigned to the contracting parties.

Below I’ve listed some other common causes of construction claims and some tips on how to avoid them:

A contract error is a very common cause of construction claims. They’re also the easiest to prevent, as long as you have a good lawyer and review your contract carefully before signing.

Typically, they can be caused by a typo or another mistake in drafting the contract, but sometimes they’re harder to spot. For example, if your contractor agrees to build something for $100 per square foot but doesn’t include any details about how big each room was supposed to be or what materials were used in their construction, you may end up paying more than necessary because the contractor assumed that you wanted them built out at full size with all the amenities included in that price point—even though they didn’t actually say so!

There’s no way around it: unless another party has been involved in writing up these agreements (like an insurance company), then it’s always best practice for you and your partner(s) involved in making these decisions review everything together before any contracts are signed off on.

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