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What are common reasons for construction companies being sued?

On Behalf of | Jul 31, 2022 | Construction Contracts

There is nothing more beautiful than a brand new high-rise or luxury home. Without the hard work of construction professionals, no one would have them to enjoy.

Unfortunately, much can go wrong during the building process. We live in a litigious society. Innocent errors sometimes result in litigation. Construction company owners should educate themselves on the most common reasons for lawsuits.

Negligence

Proper construction contracts explicitly describe the nature of work. Deviations from the language within these documents could create an angry customer. Architects and engineers that do not observe safety standards are committing professional malpractice. The quality of materials could be subpar, thus resulting in costly structural problems. Litigants may seek a legal remedy to pay for corrections.

Delays

Building agreements state deadlines by which projects must reach completion. Failure to meet these targets can wind up costing a client. For instance, a business may promote its grand opening to happen on a particular day. An inability to follow through would result in lost sales and reputational harm. Many factors can cause a delay, including a labor shortage and supply chain issues.

Payments

Disputes sometimes arise from misunderstandings about funds. A poorly worded contract may trigger confusion. Reasonable individuals could disagree on who is accountable for specific fiscal responsibilities. A contractor might buy materials that others believe are too expensive. These types of conflicts tend to involve complex nuance.

Builders must do everything possible to protect themselves from lawsuits. Understanding the myriad possibilities that can result should help them avoid trouble.