5 Disputes That Can Lead to a Lawsuit Part 1
Embarking upon any construction project comes with uncertainty. Each project is complex and every problem cannot be anticipated at the onset. As Orlando construction lawyers, we have aggressively and successfully represented countless professionals in the construction industry with disputes ranging from minor to major. We believe knowledge is one of the best ways to prevent lawsuits. In this two-part article series, we’ll list common disputes that lead to lawsuits. Visit Part 2 to view the rest of our list.
Money is a frequent battle in the construction industry. Disputes often include pay-when-paid or pay-if-paid clauses, payment bonds, and progress and final payments. Mechanic’s liens are often at the core of many disputes as well, but lienors and owners both have rights under Florida’s Construction Lien Law. Abiding by the law will reduce the likelihood of foreclosure lawsuits on properties.
2. Scope of Work/Change Orders
The Scope of Work is one the most important sections of a contract. Even if it is well-written and everyone agrees early on, most professionals find that a project’s scope may need to be modified later after a project begins. Disputes happen for various reasons from excessive change orders to a change in some requirement. Changes can cause confusion, affect scheduling, and increase costs. While changes may be necessary, still, it is crucial these changes be lessened by finding ways to reduce changes or simplify the procedures for making changes.
Delays will happen. Regardless of who or what causes the delay, the question remains: who is responsible? Delays occur for various reasons like scheduling conflicts and weather conditions. Since delays can’t always be avoided, it’s a good idea for parties to agree upon and insert a delay provision into the contract that allows an extension on completion.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.