A construction management company instructed counsel to review its operational model and contractual documentation. The company specializes in residential extensions and operates on a fixed-fee basis, managing procurement and supervision while client’s contract directly with suppliers and tradespeople. Fees are invoiced at defined project stages, typically midway through each phase, and clients are encouraged to finalize specifications before work begins to avoid delays and disputes.
Two active disputes were discussed. One involves a client refusing to pay £3,000 for windows purchased on her behalf, despite prior reimbursement for similar items. The client has threatened litigation, alleging breach of contract and incompetence without substantiating her claims. The company retains possession of the windows and is considering a without prejudice settlement offer. The second dispute concerns a £9,500 claim filed in the county court, with the opposing party now preparing a defence. The company expressed a desire to avoid litigation due to cost and reputational concerns.
Counsel advised against selling the disputed windows due to potential title complications and recommended issuing a formal without prejudice offer to resolve the matter. The importance of contemporaneous documentation for variations was emphasized, including early client notification and written acknowledgment of additional costs. Counsel proposed revising the company’s terms and conditions, offer letters, and supporting documents to clarify the scope of services, reinforce the client’s financial responsibilities, and discourage litigation where costs exceed the value of the claim. The company agreed to proceed with updates to its contractual framework to support future dispute avoidance and maintain transparency.
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