Common Legal Disputes Involving Construction Agreements

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Common Legal Disputes Involving Construction Agreements
Real Estate

Buying and selling real estate, whether commercial or residential, often involves construction agreements. Particularly in the case of commercial real estate, construction is often necessary to transform the property into the desired space for one or more businesses. However, construction disputes can result from the construction process, often involving many parties and significant sums of money. A real estate attorney at Provident Law can represent your interests and assist you in preventing and resolving construction agreement disputes as they arise.

Construction Agreements: Payment and Performance Issues

A construction agreement is a necessary part of any construction process. As with any type of legal contract, a construction agreement requires that all parties fulfill their responsibilities under the contract. The party that agrees to complete the construction that is the subject of the contract must perform the tasks necessary to complete the job. Likewise, the party that contracts for the construction must pay the sums due and owing under the contract based on performance.

Legal disputes can arise when one or more parties fail to live up to their responsibilities under construction agreements. Nonperformance of the contract can bring the construction process to a halt, which can lead to additional financial burdens for the property owner. On the other hand, failure to pay the sums due under a contract can also stop the construction process, which is costly for the contractor or construction company contracted to complete the job. Both types of contract disputes require immediate resolution to avoid potentially significant financial losses for both parties.

Contract Termination Disputes

Some circumstances may lead to one party wanting to terminate a construction agreement. For example, it may be that one party’s situation has changed, and they no longer can afford the original construction services outlined in the contract. In other cases, the construction costs may have substantially increased due to higher material costs, unanticipated problems in construction, or other reasons.

One party also may want to terminate the contract if the other party has defaulted on the contract or performed substandard or defective work. The contract terms typically will determine the rights of either party to terminate a construction contract, as well as their liability under the contract.

Change Order Disputes

Construction contracts can be complex, and one or both parties may see the need for changes to the original construction plans as the construction process goes on. This situation can lead to change orders, which may alter the terms of the original construction agreement, both in terms of the work to be performed and the cost of the contract. In some cases, disputes may arise regarding the change order over the modifications to the original contract.

Subcontractor and Material Supplier Claims

Disputes over construction agreements are not limited to the primary parties to the contract. The contractor or construction company often will utilize subcontractors to perform certain parts of the construction. Contractors and subcontractors must rely on material suppliers to have the materials necessary to perform their duties under construction contracts. If a subcontractor or material supplier is not receiving payment as agreement, they may refuse to perform the work or provide the materials they agreed to provide. This situation also can lead to costly delays in the construction process.

Contact a Real Estate Attorney at Provident Law Today for Help

Delays in the construction process due to disputes, which may occur for various reasons, can lead to costly losses for all parties to construction agreements. Therefore, you need immediate legal advice to avoid further monetary losses in this situation.

The real estate lawyers of Provident Law have over 250 years of combined legal experience. We aim to build a relationship with you and our clients as we work with you through your most complex legal problems. Call us today at (480) 388-3343 or reach out to us online and see what we can do for you.

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