How to Win a Dispute (and Avoid Them in the First Place)

Disputes are an unfortunate reality for landscaping contractors. Disagreements can quickly arise if expectations, scope and communication are not managed from the outset. The Building Hub's Ben Rickard explains how to protect yourself. 

Like insurance, dispute prevention starts before the work begins. The difference between winning and losing will often come down to strong systems, clear documentation and good communication. At The Building Hub, we see the same issues arise time and time again.

Common reasons for a dispute

1. It starts at quote stage

Landscape projects often evolve as site conditions become clear. We all know it's tempting to leave out stuff you know will need to be done once the job gets going in order to win it, but quotes that omit excavation, drainage, unsuitable soils, rock removal, access issues, irrigation changes, or planting variations can create disputes. Be realistic and explain assumptions before work begins.

2. Poorly defined scope of work

If the scope is vague, incomplete, or open to interpretation, disagreements are much more likely. Clients assume things are included, while the contractor assumes they're not. For example, who is responsible for locating underground services?

The gap between those assumptions becomes the dispute. When the scope is unclear, it's much more likely the Disputes Tribunal referee will rule in the homeowner's favour.

3. Poorly managed variations

Changes during a project are normal. But changes, like substitutions or client design changes, that are agreed without written documentation are dangerous, especially if you're not invoicing them until the end of the job.

4. Payment issues

Late payments or unclear invoices are a major source of disputes. When cashflow tightens because the job has blown out, the pressure can tempt homeowners to look for ways to dispute payment – especially if they have maxed out their loan from the bank.

5. Quality expectations vs reality

Disputes often arise where expectations aren't aligned, so it's important to agree on expected finish standards. Natural stone, concrete, timber, plants and lawns all have natural variation, and living plants continue to develop after installation.

What the client considers a defect may actually fall within acceptable tolerances. Without an agreement over what quality looks like, this mismatch can cause trouble.

6. Communication breakdowns

Many disputes aren't about the issue itself, they're about how it was handled. Unfortunately, too many contractors don't like having those challenging conversations. Lack of communication, delayed responses or avoidance of the problem quickly erodes trust.

How to reduce the chance of a dispute

The best strategy is to prevent disputes before they start.

1. Trust your gut

Sometimes there's a nagging suspicion that something isn't right. Avoiding difficult clients in the first place is a great way to minimise the risk of disputes. Do some basic background checks, including verifying that they can afford the work.

2. No surprises from day one

Contractors who control the process from end to end are much more likely to have a satisfied client and substantially fewer disputes.

Explain to your prospective client that you can arrange concept drawings (for a small fee) and work with them to make these achievable based on their budget. Explain all the likely costs, so they are making an informed decision from day one.

3. Start with a strong contract and scope

Use a fit-for-purpose contract with a detailed scope of work. Be clear about inclusions, exclusions, provisional sums and responsibilities of both parties. Make sure you've communicated the importance of the contract in protecting both parties and don't start work until it is signed.

4. Set expectations early

Discuss quality standards, timelines and potential risks like weather-related delays at the start.

Educated clients are less likely to become difficult clients. Make sure to point out the important parts of the contract.

5. Get all variations in writing

No variation should proceed without written approval. This protects both parties and removes ambiguity around cost and responsibility.

6. Follow compliant payment processes

Issue invoices as payment claims that comply with the Construction Contracts Act. This strengthens your legal position significantly if there is a dispute over payment.

7. Consider using an electronic trust account to hold payments

This is an independent service that holds the client's money during the project. It increases trust between the parties because the client knows the contractor will only get paid after they've done the work, and the contractor knows the money is there and will be paid once the work is done. If there's a dispute over the work or payment, the money stays in the trust account until the dispute is resolved.

8. Train your customer to pay little and often

Most disputes happen towards the end of the job when large sums of money are still owed.

A payment schedule that is more frequent (eg. fortnightly) trains the customer to pay regularly and keeps the amounts owing more manageable. There is also less at risk towards the end of the project if an issue does arise.

9. Document everything

Keep records of emails, site meetings, instructions and progress photos. Good documentation turns "he said, she said" into evidence.

In a nutshell

Most landscaping disputes are preventable.

Contractors who clearly define their scope, manage variations properly, communicate regularly and keep thorough records are far more likely to avoid disputes, and to achieve a favourable outcome if one does occur.

The Building Hub is a central place for licensed building practitioners to learn, connect and get the advice and support they need.

For more information visit buildinghub.nz or email info@buildinghub.nz.