We offer assistance with breach of construction agreement claims. This article goes into commonly asked questions surrounding these claims.
What is a Breach of a Construction Contract?
First, let’s talk about what it means if there is a breach of contract. Just like it sounds, this is what happens when one party doesn’t hold up their end of the bargain. Contracts exist for a reason, and if one party doesn’t do their part, they need to do something to make up for it.
That’s where the breach of construction agreement claim comes in. It’s how the party who was wronged starts the legal process of getting compensated.
Different Types of Construction Contract Breaches
Damages for Defective Performance – this is the most common type of claim we see. This happens when one party does a sub-par job and damages occur because of it. This can happen two ways.
If there are direct damages, that means the contractor damaged something while doing their job. Maybe they dropped a large piece of equipment and it broke something. Or they accidentally put a huge hole in the wall.
There’s also consequential damages. Maybe a floor wasn’t installed properly and collapsed, causing damage to everything underneath it.
Schedule Related Damages – just like it sounds, this is when the actions of one party affects the schedule and negatively impacts another.
For example, maybe one contractor – let’s say the cement company – is taking too long to lay the foundation. This causes delays, as nobody else can start on their part until the foundation is done.
It can happen in reverse, too. Sometimes a general contractor will push for work to be completed ahead of the contractual date.
Damages for Failure to Perform – let’s say there’s an existing contract in place. The project is moving along, but all of a sudden the mechanical contractor backs out and says they can’t do the project anymore. That falls under damages for failure to perform, because now the GC has to find a new mechanical contractor to fill that role.
How Do We Handle Breach of Construction Contract Claims?
In general, there are a few things that happen.
First, we dig into understanding what happened. Who is at fault? How did it happen? Was the contract well-worded to begin with? Was there any ambiguity?
Second, we calculate expected damages. This can be tough because it’s not just about physical damages. In fact, physical damages are the easier part to calculate. It’s not too hard to figure out how much it costs to buy construction materials. It is hard to figure out how a schedule delay impacts a business financially.
Third, we prepare our case. Whether you’re the plaintiff or defendant, we’ll do everything we can to help you win.
Give us a call at 714-456-9118 to discuss your breach of contract claim. We look forward to helping you win.