When the Client Relationship Goes Wrong
Most construction businesses have stories of difficult clients — clients who change their minds constantly, dispute legitimate invoices, make unreasonable demands, or turn a routine building project into a stressful and expensive experience. Understanding how to manage difficult client relationships — and how to avoid them in the first place — is an important business skill that directly affects profitability and wellbeing.
The best time to manage a difficult client is before they become a client. Pre-contract due diligence — getting a sense of the person you’re about to enter a multi-month relationship with, checking references from their architect or previous contractors if they’ve built before, and being willing to decline work from clients who show red flags — is far less painful than managing a difficult relationship that’s already underway.
Clear Communication from the Start
Many difficult client situations originate in misaligned expectations. The client expected something that the builder didn’t promise, but the disconnect wasn’t identified until money had been spent and emotions were involved. Clear scope documentation, written variation confirmations, and proactive communication about anything that affects programme or price are the management practices that prevent misaligned expectations from becoming disputes.
A client who is kept informed — even when the news is not what they hoped — is almost always easier to manage than one who feels they’re being kept in the dark. Surprise is the enemy of good client relationships in construction, where projects routinely encounter things that affect programme and cost.
When Disputes Arise
The Construction Contracts Act provides a dispute resolution framework for payment disputes. For other disputes — scope disagreements, quality disagreements, delay claims — contract provisions typically specify a resolution process, often starting with negotiation, then mediation, then adjudication or arbitration. Understanding the dispute resolution pathway available to you — and using it assertively when negotiation fails — is important for protecting your business’s legal rights.