Every property owner contracting for construction work has different standards and expectations. Particularly when businesses want to renovate historical edifices or when homeowners want to improve high-value properties, the use of specific materials may be a key element of the construction project.
Clients often go to great lengths to ensure that construction professionals understand their specific standards for the materials used during a construction project and their expectations for the finished product. What clients want usually determines what construction companies and professionals do, but specific material requests can create project complications. Occasionally, the companies providing materials or completing construction work may need to substitute other materials to complete a project within the proposed budget or within a specific time frame.
When can a construction company substitute materials without worrying about clients and property owners taking issue with that decision?
When the agreement allows for substitutions
Some construction firms proactively address the possibility of needing to substitute materials. They may include clauses in their agreements that allow them to substitute materials when necessary due to unusual expenses, supply chain disruptions or other project complications.
Depending on the terms of the agreement, the construction firm may not even need to provide advance notice to the clients of the substitution if the change in materials is unlikely to affect the overall price of the project. That being said, formal disclosure is almost always preferable to making a substitution without the knowledge and consent of the client.
When the client approves the substitution
In scenarios where clients have requested specific materials, construction companies or professionals may notify them in writing of issues with pricing or accessing specific materials. That way, the client can decide if they would like to absorb the additional costs, wait for supply chain issues to resolve or move forward with a substitution.
By allowing the client to make the final determination, the company can avoid scenarios in which clients litigate and claim that the substitution was an attempt to defraud them. Material substitutions are sometimes necessary when requested materials become difficult to source, cost prohibitive or a reason for substantial construction delays.
Integrating the right terms into construction contracts can help protect clients and construction firms. Yet, litigation may occur in scenarios where there are disputes about what a contract required and the decisions made by the professionals working on a property. Therefore, seeking personalized legal guidance is generally wise.
