With many construction projects running into multi-million dollar budgets and involving multiple parties, the possibility of being embroiled in a construction dispute increase every year. Construction claim preparation may need to be completed after you learn about an impending contract dispute, employment claim or lawsuit against your business. Likewise, if you are the party pursuing resolution of the dispute or litigation, you will need to complete such preparation. Conducting proper construction claim preparation may help prevent a claim from going through litigation or help minimize your risk if it does.

The need to prepare for a construction claim can arise after confusion regarding a contract arises or when a potential lien will be placed against the paying party pursuant to Alabama’s construction lien laws. However, disputes may also arise if there are other situations that give rise to litigation, such as individuals sustaining injury due to faulty steel fabrication or erection.

A business can help prepare for potential litigation by gathering key documentation and evidence together that relates to the claim. This may include employee handbooks, construction contracts, regulations regarding safety standards and other key documentation. Additionally, involved employees may be interviewed and their statements recorded to help preserve information while it is fresh on their minds. Information regarding damages may also be researched, including the amount that it would cost to hire a separate party than the one that was an original party of the contract.

A careful analysis of the claim must be conducted in order to determine additional steps that must be taken to help protect the business’ legal interests.