Although this is only a simple job, on most construction projects everyday work is undertaken with neither party being in agreement as to how it is to be valued, especially when it comes to contractor/subcontractor relations

This is partly because those agreeing the deal do not think about the underlying contract and partly because, as in this case, personal relationships can cloud sound business judgment.

If Mr Charlesworth and Mr Thompson had not been so friendly, they would have written down the extent of the work, the specification, how any instructions or changes were to be dealt with and how the work would be valued.

Forming a construction contract is a business. It is one thing to be friendly with other members of the construction team but another to allow friendship to jeopardise good business judgment. From the outset, you should keep your eye on the eventual financial settlement and try to avoid unnecessary court costs.

Source

Construction Manager