A contractor sues an owner for refusing to make final payment after the job was completed. The owner is demanding changes. Of the following, which is the best way for the contractor to avoid a lawsuit?

A contractor sues an owner for refusing to make final payment after the job was completed. The owner is demanding changes. Of the following, which is the best way for the contractor to avoid a lawsuit?

• A. File a private arbitration
• B. The contractor could have walked the job with the owner and had the owner sign a job completion form
• C. Accept the changes and finish the job
• D. Delay filing suit until the changes are resolved

Answer: (B)

The main idea here is securing a written, mutual acceptance of the work at completion. A joint walk-through with the owner and a signed job completion form gives both sides a clear, dated record that the work has been completed as agreed and that any outstanding changes or punch-list items will be handled through formal change orders. This signed form can also serve as a release or acknowledgment that final payment is due under the agreed scope, while reserving the owner’s right to request changes through proper procedures. In short, it creates a documented settlement at the moment of completion, which is the most effective way to prevent disputes and lawsuits over payment and scope. Other options don’t provide the same immediate protection: arbitration moves the dispute elsewhere but doesn’t eliminate the risk of a suit or secure payment now; walking off with no agreed form leaves ambiguity about what’s finished and what’s changed; delaying the suit postpones resolution without addressing the underlying acceptance and payment issue.

The main idea here is securing a written, mutual acceptance of the work at completion. A joint walk-through with the owner and a signed job completion form gives both sides a clear, dated record that the work has been completed as agreed and that any outstanding changes or punch-list items will be handled through formal change orders. This signed form can also serve as a release or acknowledgment that final payment is due under the agreed scope, while reserving the owner’s right to request changes through proper procedures. In short, it creates a documented settlement at the moment of completion, which is the most effective way to prevent disputes and lawsuits over payment and scope.

Other options don’t provide the same immediate protection: arbitration moves the dispute elsewhere but doesn’t eliminate the risk of a suit or secure payment now; walking off with no agreed form leaves ambiguity about what’s finished and what’s changed; delaying the suit postpones resolution without addressing the underlying acceptance and payment issue.