Disputes and claims are time consuming, costly and can be highly stressful. It’s well known that prevention is better than cure. Here, we set out some practical tips to help reduce your exposure to disputes and claims.

Keep an eye on the date

In entering into a contract give some thought as to whether the timeframes you are committing to are realistic and achievable. Once you have agreed to those deadlines remember to make a note of them. It sounds so simple but missed or unsuitable timeframes are the source of large numbers of claims. Make sure that you set up reminders for any significant dates that must be met, such as delivery of a service, deadline for payment etc. If you have delegated responsibility for a particular task to someone else, then set a reminder to check whether they have actually done it.

Put it in writing

It is easy to think that you will remember the details of a telephone call or meeting only to forget one or more points with the passage of time. Agendas, action lists, minutes of meetings are all useful tools in ensuring good administration of your day to day business activities. They help, at the time, to ensure all parties have similar understandings as to what has been agreed and what is expected of them. This can significantly reduce the chance of later disputes. Additionally, if the worst does happen and a dispute arises, a written record is a much stronger source of evidence.

Document trackers and version control

Make sure that you are performing in accordance with the final version of any contracts that you have entered into by ensuring you have a version control system in place. There is nothing worse than hitting a deadline to achieve X by the 22^nd of the month only to realise that the date was changed in the final version of the contract and you should have completed X by the 15^th.

Many companies have e-filing systems in place now to deal with incoming correspondence. If you don’t then consider setting up a document tracker system such as a spreadsheet to provide an internal audit trail. This will help to prevent correspondence being overlooked and establish effective operational procedures.

Email

There is no doubting that email has been a game changer in how we do business. It is now an essential part of the toolkit of almost every business. It does, however, have its downsides. On the administration side, it is all too easy to send an email to the wrong recipient. This may not be a problem if it’s an innocuous email about the weather but it can be disastrous if it’s supposed to be a confidential report to the boss and you send it your customer by mistake.

Another problem with email is interpretation. The tone of your email may be interpreted completely differently by the recipient than how you intended it. This can lead to friction and an unintended change in the dynamics of a business relationship. Email is incredibly useful but there are times when picking up the telephone or having a meeting is the better option.

Communication

That leads on to our final point. Communication is key. Internally, the team should be talking to each other to drive projects forward, coordinate approaches and responsibilities etc. Externally, many disputes can be headed off by utilising good communication. If it seems likely that you are going to miss a deadline then letting your customer know as soon as possible allows them time to react and adjust. You can then work together to find an acceptable solution. We’ve lost count of the number of claims we’ve seen that could have been avoided if the parties had simply talked to each other. One final warning though; put procedures in place internally to ensure that this kind of external communication is carried out at an appropriate level to ensure liability is not admitted in inappropriate circumstances.