While the following story didn’t occur here in Florida, it exemplifies the problems that can occur when two parties are unable to reach an amicable solution to a contract dispute. It also highlights the potential problems a business can have with its perception within the community if a contract dispute is out of control.
In this particular case, a construction company contracted with a city to redo a sidewalk. It is a critical street with plenty of businesses, and the project was only supposed to take about nine months to complete. However, after some change orders in the contract caused some disagreements between the parties, the construction company walked off the project in the middle of January. It has now been three months since then, and the sidewalk remains unfinished with equipment and safety cones everywhere.
Businesses along the street are outraged, as it makes it difficult for customers to even know if they are open. It is impacting their ability to draw any foot traffic to their stores. And that’s just an indirect problem with this contract dispute. There’s the literal hazard of the construction zone now, just sitting there without being completed.
Contract disputes can cause a wide array of expected — and unexpected — problems for not just the parties involved with the contract, but innocent people on the periphery. Companies can see their reputations ruined by a contract dispute, even if their concerns are legitimate.
Source: FOX 5, “Stone Mountain sidewalk project on hold after contract dispute,” Claire Simms, April 23, 2017