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What happens if my construction contract is breached?

On Behalf of | May 25, 2016 | Contract Disputes |

Signing a contract is something that should never be taken lightly. These legal documents, when properly drafted, set critical rules, guidelines and penalties that dictate the relationship between the signing parties. If a valid contract is breached, several steps can be taken to remedy the situation.

For example, if you are a homeowner and sign a contract with a construction company to complete work in a certain period for a certain price, then you expect those terms to be met. However, if you or the other party fails or refuses to comply with a contract, various legal actions can be taken to remedy the situation.

If a dispute is fairly minor or if both parties agree on the problem, finding a solution can be as simple as having a conversation and re-establishing expectations. Discussing the problem right away and with the intent of finding a solution as quickly as possible can help to prevent a problem from getting worse.

If you cannot resolve the problem in this informal manner, more formal action can be necessary. Depending on the clauses that may or may not be in your contract, this could mean resolving the matter through mediation or arbitration.

If these options fail or are not appropriate, litigation can be necessary. While this may seem like a good option, there are drawbacks to consider, including added time and money. However, it is regarded as a highly effective way to resolve a legal dispute.

Using any of these methods should make it clear what needs to happen to resolve the dispute. This will depend on the problem itself. If it’s something that can be fixed, the responsible party can be ordered to fix it. If the situation is beyond repair, the contract may be cancelled. If the contract breach led to damages, the breaching party can be ordered to compensate the non-breaching party for those damages.

If you are concerned that an existing construction contract has been breached, it can be crucial that you consult an attorney sooner, rather than later. Doing so can help you assess your options and hopefully prevent a dispute from causing further damage to a project and/or relationship.

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