Include delays in your contract to avoid litigation

| May 19, 2020 | Construction Litigation |

No one wants to get sued or to have to sue. It’s a hassle, and it’s a tedious legal process to go through if there are alternatives.

The construction industry does see a number of construction litigation cases, though, because of the nature of its business. The common causes of litigation include:

  • Legal claims over a breach of contract
  • Injuries that occur during construction
  • The quality of a construction project
  • Nonpayment

As a contractor, you want to do everything you can to protect yourself against litigation. To do so, one of the things you need to think about most is how you’re going to keep your project on track and delivered on time.

Delays in construction are one of the most common reasons for lawsuits. Delays aren’t uncommon, because there can be delays getting materials, trouble with weather, delays receiving permits and other issues to address during construction.

Though those delays aren’t usually the contractor’s fault, it’s important that you make a written agreement with your client that helps you avoid litigation with any delays that do happen. Some delays are going to be uncontrollable, and they should be mentioned in your contract.

In your contract, you’ll want to address all kinds of delays, such as those that happen “out of human control” and those that could occur because of delays in the delivery of permits, materials or labor. You may also want to consider inserting an arbitration clause in your contract so that you can mitigate the risk of a lawsuit going to court if delays do occur and hold up the project.