Anyone who has ventured into the world of large-scale construction knows that the saying “unexpected events happen” is almost a mantra. Each project has its own uniqueness; contracts and their execution are usually more complex, some changes may occur along the way, deadlines may already start off tight, among other challenges. All of this contributes to the emergence of conflicts, which can arise when least expected.
Did you know that more than 11,000 construction projects are currently halted in Brazil, tying up approximately R$22 billion in investments? These figures come from the Tribunal de Contas da União (TCU) and are striking, but the reasons behind them are even more concerning: poorly drafted contracts, poorly defined scopes, communication failures, undocumented project changes, and leaders unprepared to deal with the bureaucracy and conflicts that emerge in the daily routine of a construction site.
It’s common to see engineers and project managers treating contracts as nothing more than a mandatory “checklist.” But in practice, the contract is the backbone of any major project. When well structured — with clear clauses on risk allocation, responsibilities, deadlines, measurement and payment criteria, dispute resolution mechanisms, and more — it helps prevent and minimize the risk of conflict.
That’s why it’s crucial for companies to have an active legal department — not one that only steps in when a problem explodes, but one that takes part in the project’s structuring phase, working side by side with operational teams from the very beginning. This close involvement allows the lawyer to understand the dynamics between the parties and translate them into well-drafted documents that accurately reflect the project’s reality. After all, as good engineers know: the foundation must be solid to support a great structure. And in the business world, that foundation is built by a legal team involved from the start.
This is one of the keys to preventing disputes: building solid foundations during the pre-contractual phase. So, if you’re leading major construction projects, make sure to bring your legal team in from the first step. Legal prevention isn’t an expense — on the contrary, it’s an investment that can save you from immeasurable losses.
