Corporate Governance
Federal, state, and local laws affect the physical construction of commercial and residential structures.
Construction laws help to manage the workflow and expectations of contractors, subcontractors, and businesses that are involved in performing the work. Construction laws also address outlying issues such as workplace safety, employment laws, zoning, and environmental regulations.
Most disputes arise over contract claims. Like any other contract, construction contracts prevent surprises during the project. A well-written, clearly detailed contract can save contractors from future problems. Some contracts may contain an arbitration clause, to prevent the litigation process. It’s important that the construction contract details a description of the work being performed, an estimate of how long it will take to complete the work, and the names of any subcontractors and material suppliers that will be utilized by the contractor.
Litigation in construction surfaces when parties in a project fail to fulfill their contractual obligations. It usually involves a conflict between the owner and contractor, but can also include subcontractors, suppliers, lenders, insurers, architects, engineers, and other parties involved in the construction process.
Attorney Contact: Scott J. Orille
Protect Your Business from Litigation Issues
CAUSES LEADING TO CONSTRUCTION LITIGATION:
- Contract Disputes:
Disagreements between the client and the contractor arise concerning the scope of work. Issues can occur when the contract is unclear or the nature of the project changes during construction. - Errors and Omissions:
Involves mistakes, missing details, or incorrect information in the contract documents concerning the design and construction of a building. - Defects:
Unacceptable quality of construction materials or workmanship. - Construction Delays:
Holdups on schedules due to lack of resources, bad weather, changes in project scope, labor availability, permit delays, and more. - Environmental Issues:
The erection of a new building structure might negatively affect native green spaces, water preserves, and sewer and drainage systems. A change in traffic patterns could be challenging to current residents. - Professional Liability:
Claims of negligence, fraud, faulty designs, improper installation, personal injury, or misrepresentation by a professional involved in the project. - Nonpayment:
Contractors complete a project, and the owner does not provide the agreed-upon compensation.
Frequently Asked Questions
What is the difference between civil and business litigation?
The main difference between civil litigation and commercial litigation is that civil litigation is a lawsuit between individuals to enforce a legal right in which the plaintiff seeks payment from the defendant, whereas commercial litigation involves businesses or companies. Civil cases are not about breaking a criminal law.
What is involved in the business litigation process?
Business litigation can be a complex and lengthy process and involves several steps as outlined below:
- Investigation
- Filing the Lawsuit
- Serving the Defendant with the Papers
- Filing a Response
- Discovery
- Settling
- Pretrial Phase
- Trial
Do I need an attorney for business litigation?
It is strongly recommended that businesses seek legal representation when involved in any type of litigation. An experienced litigation attorney will advise you regarding your rights and help to protect your interests during the litigation process. Should the case goes to trial, having legal counsel will help to ensure a favorable outcome.
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