Top Service News
Avoiding Legal Disputes in Construction: How to Build Strong Client Agreements
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In construction, a handshake can still seal the deal — but when things go wrong, that informal approach can cost you time, money, and reputation.
At Top Service Ltd, we’ve worked with thousands of credit professionals, merchants, and suppliers who’ve been caught in the crossfire of disputes over unpaid invoices, delivery terms, or liability. More often than not, the root issue is the same:
The client agreement wasn’t clear, or wasn’t in writing at all.
This month, we’re helping construction businesses understand how to build watertight agreements that prevent disputes before they happen — and protect your business if they do.
Why Strong Client Agreements Matter More Than Ever
With tight margins, complex projects, and increasingly cautious clients, construction suppliers are more exposed than ever to payment delays and disputes.
Some common risk scenarios:
- No written agreement on credit limits or payment terms
- Verbal changes to scope or delivery expectations
- Clients disputing quality or performance after materials are delivered
- Customers use unclear clauses to delay or reduce payments
Legal disputes are expensive, stressful, and time-consuming — even when you win.
The 6 Essentials of a Strong Construction Client Agreement
To reduce the risk of non-payment or disputes, every agreement should clearly set out:
| Element | Why It Matters |
| Full legal entity name | Avoids chasing the wrong company or an untraceable trading style |
| Payment terms | Clearly outlines when you expect to be paid (e.g. 30 days EOM) |
| Credit limit | Sets expectations and allows you to monitor risk exposure |
| Delivery and acceptance terms | Clarifies responsibility, timing, and when liability transfers |
| Retention of title clause | Helps you retain ownership of goods until paid in full |
| Dispute resolution process | Prevents escalation and protects both parties |
Top Service Tip: Agreements don’t need to be 10 pages long — but they must be clear, signed, and consistent with your internal processes.
Common Mistakes That Lead to Disputes
“We’ve always done business on a handshake”
“It’s just a small job — didn’t seem worth a contract”
“They paid late, but they always pay eventually”
These scenarios are all too familiar — and often lead to:
- Arguments over when materials were accepted
- Claims of non-delivery or incorrect products
- Late payments with no agreed terms to fall back on
- Legal costs that outweigh the debt being chased
We regularly support customers trying to recover debts where the only proof is an email trail, a verbal promise, or a vague purchase order.
How Top Service Ltd Supports You
We don’t just help you chase debt — we help you avoid needing to.
As a Top Service customer, you can:
Access credit application templates and advice
Get guidance on key clauses to include
Credit check new customers before you agree terms
Monitor accounts for changes in credit risk or trading behaviour
Recover unpaid debts professionally and fairly — even without a formal agreement
Our team understands what works in construction — and where credit risk turns into cashflow loss.
