Construction projects often involve numerous parties, complex contracts, and intricate work processes. Disputes can arise at various stages of a project, which can lead to delays and financial losses. Litigation attorneys play a crucial role in resolving these types of disputes by advocating for their clients' rights in legal proceedings. Continue reading to learn more about what construction litigation attorneys can do.
Contract Disputes
Contract disputes can arise due to the following reasons:
Breach of contract
Failure to perform: When one party fails to fulfill its contractual obligations, such as completing work according to specifications or within the agreed-upon timeframe.
Non-payment: When a party fails to make payments as stipulated in the contract, whether for completed work, materials, or services rendered.
Interpretation of contract terms
Ambiguities: Disagreements may arise over the interpretation of contract terms, particularly if the language is unclear or open to different interpretations.
Scope of work disagreements: Parties may dispute the scope of work outlined in the contract that go over the responsibilities, deliverables, and project milestones.
Construction Defects
Types of defects
Structural: Defects that compromise the stability or integrity of a structure, such as foundation cracks, structural framing issues, or roof leaks.
Design: Omissions in the project's design, including inaccuracies in drawings, specifications, or calculations.
Material: Substandard or faulty materials used in construction, such as defective plumbing fixtures, electrical components, or building materials.
Liability issues
Builder/contractor: Parties responsible for constructing or implementing the defective work may be held liable for construction defects.
Architect/engineer: Design professionals may be liable for defects resulting from errors or omissions in their design plans or specifications.
Supplier/manufacturer: Suppliers or manufacturers of defective materials or products used in construction may be held liable for resulting damages.
Delay and Disruption Claims
Causes of delays include the following:
Weather, such as rain, snow, or extreme temperatures, that disrupt construction schedules and cause delays.
Changes to the project scope, specifications, or design can impact construction timelines and also lead to disputes.
Labor strikes, labor shortages, or disputes between contractors and subcontractors can disrupt workflow and delay project completion.
Impact on project timeline and costs resulting in increased project costs, penalties for late completion, and damage to the parties' relationships.Â
Legal recourse for affected parties that experienced construction delays and are pursuing claims for damages, negotiating settlements, or seeking equitable relief through legal proceedings.
Payment Disputes
Contractors, subcontractors, and suppliers may face disputes over non-payment or delayed payment for work performed, materials supplied, or services rendered. Parties seeking payment for construction-related services or materials may file mechanic's liens to secure their interests in the project property and compel payment. Changes to the project scope, specifications, or design may lead to disputes over additional compensation for change orders, extras, or unforeseen work.
Professional Negligence Claims
Design professionals, such as architects and engineers, may be held liable for errors or omissions in their design plans or specifications that result in construction defects or delays. Litigation attorneys can assess whether design professionals met the applicable standard of care in performing their duties and advocate for their clients' rights in professional negligence claims. You can seek damages for economic losses, project delays, additional construction costs, and other related damages.
Insurance Coverage Disputes
Construction litigation attorneys can help in the following ways during disputes:
Interpret policy language including coverage exclusions, or limitations related to construction defects, delays, or liabilities.Â
Find out insurance coverages for construction defects, delays, and liabilities, file claims with insurers, and resolve disputes for construction-related losses.
Subrogation and indemnification issues from other parties responsible for construction defects, delays, or liabilities to recover payments made to policyholders.
Alternative Dispute Resolution
Mediation
Mediation gives an opportunity to resolve construction disputes through facilitated negotiations, often resulting in quicker and less costly resolutions than traditional litigation.
Arbitration
Arbitration is a more formal alternative to litigation, allowing dispute resolution by a neutral arbitrator or panel of arbitrators.
Negotiation
Negotiation provides time and space for parties to discuss their differences, explore potential solutions, and reach mutually acceptable agreements outside of formal legal proceedings.
Advantages and limitations of ADR in construction disputes
Alternative dispute resolution (ADR) methods provide even more flexibility, confidentiality, and potential cost savings compared to traditional litigation. However, they may not always result in binding resolutions and may lack the formal legal remedies available through litigation.
Litigation attorneys can help you assess your legal rights and pursue remedies for delay-related losses during construction projects. Construction disputes encompass a wide range of issues, including breach of contract, construction defects, delays, payment disputes, insurance coverage disputes, and more.Â
If you are involved in a construction dispute, don’t leave it up to chance. Contact East Idaho Law today and ask for a construction litigation attorney to help you through the process.