Running a contractor business will require you to face many hurdles. Some, like a challenging project, are welcome as it will shape you into a better contractor. Whereas others, like a lawsuit, are something that you would want to avoid.
A lawsuit is a legal action taken against you. In most cases, a client who feels you did them wrong files it. Defending your business against it needs foresight. This is what we give to you today. After all, prevention is better than cure.
Contract
Your biggest line of defense is the contract that is signed between both parties. This is a written agreement that safeguards the interests of you and your client.
Draft a written contract before you start the project. It should have all the details that are agreed upon between the parties involved. You can do this yourself or hire a legal professional to draft one for you.
Written Changes
Most projects have proposed changes from the client’s end. This usually happens mid-project. The change will alter the details of your signed contract. Hence, you must ask your client to write the deviation from the contract and sign on that.
This saves you from any false allegations from their end later on.
Photographs
You can use photos as proof to save your case. Take pictures of the site before you work on it and after you complete your work. This gives you proof of exactly how the area looked before you worked, saving you from false claims of damages.
On a distinct note, these before-after photos could be a major step in the right direction in terms of marketing ideas.
Communication
Clear communication is a must between you and your client. Ask them their preferred means of communication and how often they want their updates. Stick to that schedule, whether you have good news or bad.
If you have a good customer relationship, they could overlook a few basic mistakes occasionally. Even if they are unsatisfied, they’d rather talk with you about a solution instead of suing.
Clear Records
If you face a lawsuit after all your precautions, trust your contract and records.
Your organization must maintain accurate records of every deal you make. This involves noting down the number of meetings you had, the date of proceedings, and a detailed list of agreements. These records help provide accurate answers to the eyes of the law.
Hire A Lawyer
A lawsuit can be a tough ordeal. It takes an enormous chunk of your time, money, and patience. A prolonged case can hurt your reputation, even if it goes in your favor.
Trust a professional to handle this situation by hiring a lawyer. Explain the situation to them and refer to the contract for the initial study. Understand their plan of action to deal with your case. Provide any additional information and trust the process.
Besides the ones mentioned above, a lawsuit can hurt your business in many more ways. Therefore, if you feel you are on the wrong project, it is better that you cancel the contract.
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