Why Construction Partnerships Unravel and How to Save Them Part 3
It’s critical that construction business owners have written agreements with any co-owners of their company and for all of their projects. In this five-part article, Tampa construction lawyers with Cotney Construction Law are discussing scenarios in which construction partnerships end and what your options are. In the first part, we discussed some common reasons why construction partnerships dissolve. In the second part, we discussed a few tips to prevent this from happening, including developing a clearly worded agreement. In this part, we will explain some more benefits of having this agreement in place.
The More Detail the Better
When it comes to creating a written agreement with a business partner, the more information and the more detail in the contract the better. When an agreement clearly defines each partner’s role and responsibilities, this ensures that both parties understand exactly what they are agreeing to, which can help mitigate the chances of a dispute arising.
Of course, the unexpected can still happen, and a dispute may be unavoidable at some point down the road, which is another benefit of having a well-defined written agreement in place as this contract can define the specific way that this dispute can be resolved. We will discuss some of these options in parts four and five of this article.
Don’t Be Afraid to Address Important Topics
One mistake business owners make is that they shy away from addressing important issues with a potential business partner in fear of upsetting the other party. It’s extremely important that you put these uncomfortable feelings aside and address these issues before you agree to do business with another entity. In fact, it’s logical to discuss any of the previously mentioned issues. As business operations and expectations change, so too will each owners role in the company.
When a Tampa construction lawyer creates a detailed contract on your behalf, it can also act as a guideline for you and your business partner to utilize when you need to address certain situations. This gives both parties equal ground and also clarity to handle these issues as they occur. When business partners are “in the know,” this eliminates any uncertainty as both parties can rely on the provisions set forth in their agreement for the guidance they need to resolve the issue.
A Construction Attorney Can Help Every Step of the Way
As your business grows, there will be a need for more agreements between you and your business partner or partners. All of these agreements should be in writing to ensure not only that everyone is on the same page, but also that this document is in place to reference in case a dispute arises. In many cases, having this agreement in writing can be the difference between costly litigation and resolving a dispute immediately.
It’s critical that business owners never rely on a boilerplate agreement or prepare their own. Establishing a well-defined contract is never an area where you want to cut corners, and your agreement should be specifically tailored to your business operations, aspirations, and best interests. An attorney can draft or review all of your contracts.