If you run a construction company, it is very important to handle disputes correctly and there are many reasons why disagreements arise, from employment matters to delays. However, construction defects are especially challenging to deal with and when alleged defects lead to litigation, contractors need to understand their rights. For example, you should have a clear understanding of the unique nature of your case and review your liability with respect to damage.
Unfortunately, some contractors are so overwhelmed with daily stressors that they do not examine their options and they are unable to secure a more favorable outcome in court.
Reviewing damages and liability
Sometimes, contractors are liable for damages that occur during a construction project. According to the Texas Constitution and Statutes’ website, contractors are not held liable for certain damages, such as typical deterioration and wear and tear. If an individual other than the contractor (or his or her employee, subcontractor or agent) failed to take reasonable steps to mitigate damage, contractors are not always liable for the damage. Also, if a residence or property is damaged because of another party’s negligence, the contractor is not held responsible.
Reviewing the impact of construction disputes
Construction disputes can bring up many different financial hurdles, some of which can spell disaster for the future of a business. Aside from penalties and legal fees, construction disputes over defects or any other concern are often very hard from an emotional viewpoint as well. Many contractors struggle with high levels of stress during a dispute, which can have an adverse effect on other projects and issues as well.