The construction industry is a very important one as it is responsible for building homes, commercial buildings, making major repairs, and handling various infrastructure projects. This is also a fast-moving and competitive industry. Due to the significant costs that come with any construction project, there is always a chance that one company could incur a loss due to the acts or negligence of another party involved. In some cases, this could result in legal actions. It is important to understand the most common causes of construction law disputes and what could potentially be awarded.
Causes of Construction Law Disputes
A major construction project comes with a significant amount of costs, weather challenges, and other challenges that can make it challenging to complete a job on time and within budget. If there are serious delays or other damages, it could result in a financial loss and a legal dispute. There are three primary causes of situations that could result in a legal dispute:
- Inexcusable Delays – Any delay in construction is going to result in a loss for someone. If there is a construction error, lack of adequate staffing, stop-work order due to zoning violations, or other challenges that result in a delay, it could be deemed inexcusable and any losses incurred could be deemed the responsibility of the contractor.
- Excusable Delays – While some are deemed inexcusable, some delays are considered excusable. If there is severe weather that precludes construction, it can be considered an excusable delay. However, the contractor is generally required to plan and budget for bad weather that is common for the local area. Other excusable delays can include if there is a change order that requires additional construction.
- General Damages – Another significant type of construction dispute are general damages. If there is physical damage to the constructed property, noticeable design flaws caught during the inspection, or other similar challenges, it could result in a legal dispute. In some cases, the contractor will make necessary repairs to rectify the damages.
Types of Damages that Can be Awarded
If there was an error that took place due to unnecessary delays or damages in a construction project, seeking out compensation for your losses is a good idea. There are various types of damages that can be awarded during any type of construction law dispute.
Costs to Make Repairs and Obtain Licensure
One of the most common types of damages that will be awarded during a construction law dispute are damages associated with repairs needed to a property. After construction is complete, there will likely be an inspection process that will be used to confirm the condition of the property. If there are repair needs, it could impact the property receiving the certification it needs to open. While most of the time the contractor or subcontractor will make necessary repairs, there are situations in which they will object. In these cases, the other parties may need to pursue a further legal action to receive appropriate compensation. In these cases, the owner may be awarded financial compensation to cover these repairs.
Costs to Cover Liability Claims
One of the risks that can come with any type of building defect is that it could lead to a malfunction, which could cause an injury to someone that is in the building. If someone is injured due to the defect of a building, the property owner will ultimately be held responsible. If the defect is due to an original construction error, it would be appropriate for the building owner to seek damages from the contractor. If it can be evidenced that the defect is due to building construction error, the contractor will likely need to cover any damages incurred by the injured party.
Costs Due to Delays
Construction delays do happen from time-to-time and should be expected by all parties. However, if the delays are due to the negligence or poor planning of the contractor, the owner of the building could pursue a legal action to receive support for their damages. Some damages can include incurring additional financing fees, lost revenue due to the project not being complete, or losing a potential tenant as the delivery date is not achieved. If negligence does exist, these damages could be awarded in a construction law dispute.
If you are involved in a legal dispute surrounding a construction project, it is important that you have legal support by your side. When you hire attorneys for construction disputes, they can offer all the support that you need to evaluate your case and handle all negotiations. Whether you are the contractor or owner, speaking with Dickson Legal is a great option. The legal team here will help ensure you are properly represented and receive the compensation that you are entitled.