The Importance of Communication in Construction: Lessons from Paul Sandori

In the construction industry, where precision is paramount, communication can be the linchpin for successful projects. A recent discussion led by Paul Sandori, a senior consultant at Revay and Associates Ltd., underscores this truth, highlighting how “loose lips” can jeopardize not just projects but entire businesses. As practitioners in this field, builders, contractors, and developers should heed Sandori’s insights on the potential pitfalls of careless communication within their teams and with clients.

The Cost of Miscommunication

Sandori’s analysis of construction disputes reveals that misunderstandings can have far-reaching consequences. His presentation at the Ontario General Contractors Association (OGCA) emphasized the dangers of boilerplate contract clauses that may contradict one another. He shared a pertinent example where conflicting wording regarding change notices escalated tensions between a contractor and an owner, leading to a detrimental breakdown in relationships and costly delays.

Such disputes often spiral into lengthy litigation, draining resources and time from all parties involved. The case Sandori referenced ultimately led to the contractor being removed from the project entirely. This scenario is not an isolated incident; it serves as a cautionary tale for professionals in the field.

The "Loose Lips" Warning

Drawing a parallel to the WWII slogan “Loose Lips Sink Ships,” Sandori pointed out that careless remarks or poorly communicated information can sink a construction project just as effectively. He argued for the importance of vigilance when discussing terms, expectations, and potential changes in a project. His message was clear: communication should be deliberate, timely, and ideally documented, using diagrams or pictures where appropriate.

This caution stems from his extensive experience in dispute resolution, reinforcing the idea that proactive communication can mitigate confusion and preserve working relationships.

Legal and Contractual Implications

Many construction professionals may not fully grasp the complexity of legal issues embedded in their contracts. Sandori’s insights serve as a wake-up call. He emphasized the need for a clear understanding of the legal language in boilerplate clauses to avoid unintended consequences. Misinterpretations can lead not only to disputes but also to significant delays and financial burdens.

Moreover, understanding bidding and tendering law is crucial for minimizing risks associated with disputes. Sandori, being a co-author of a book on the subject, advocates for increased awareness in this area among construction professionals.

What This Means for Your Business

1. Prioritize Clear Communication: Ensure that all parties understand key contractual terms and changes. Regular meetings to discuss project progression can help prevent misunderstandings.

2. Document Everything: Keep detailed records of conversations, agreements, and changes. This will serve as a reliable reference in case disputes arise and support your position if you need to resort to legal action.

3. Educate Your Team: Regularly train your staff on legal implications tied to contracts, emphasizing the significance of precise language and documentation in all communications.

Conclusion: Navigating Future Challenges

As the construction industry continues to evolve, the need for clear communication becomes even more critical. Companies must remain vigilant against misunderstandings that could derail projects. By taking proactive measures to enhance communication, understand legal implications, and anticipate potential disputes, construction professionals can steer their businesses toward greater stability and success.

In a competitive landscape fraught with challenges, embracing these lessons can position companies to navigate opportunities effectively while minimizing risks. The adage "an ounce of prevention is worth a pound of cure" has never been more relevant.

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Published: 2011-04-05 02:00:00
Original Article: Read it here