How should a contractor handle disputes with a client?

When a contractor is faced with a dispute with a client, attempting negotiation or mediation before resorting to legal action is a strategic and often more effective approach. Engaging in negotiation allows both parties to communicate openly about their concerns, which can lead to a mutually agreeable resolution without the need for lengthy and costly legal proceedings. Mediation, involving a neutral third party, can also facilitate a constructive dialogue, helping to clarify misunderstandings and find common ground.

Moving directly to legal action can escalate the situation, leading to significant financial costs and potentially damaging the relationship between the contractor and the client. Additionally, halting communication with the client can exacerbate the issue and prevent finding a timely resolution. Issuing a public statement is not typically advisable in these situations as it may create further misunderstandings and erode trust. Therefore, the best first step in dispute resolution is to seek a collaborative discussion or mediation with the client.