Common Types of Construction Claims Part 2
Whether it’s the shiny new housing development in the suburbs or the highway that leads to it, construction projects will have their issues. Some issues are easily resolved while some are more complex or far-reaching and require additional examination. If an owner or a general contractor feels that the other has created an environment that will impede the progress of a construction project, a claim can be made. These claims can cost time and money and should be dealt with immediately. An Orlando construction attorney can provide guidance on whether you are filing or addressing a construction claim.
In Part 1 of this series we also addressed a number of claims that can derail construction projects if measures aren’t put in place to avoid them. Here are three more to look out for:
If an owner has terminated a contract before or after work has started, the contractor may be entitled to compensation. While the amount of compensation may vary based on the specifics of the case, the contractor may be entitled to receive the full amount of his or her contract.
If an owner requests additional or different work without submitting a formal change order, the contractor can submit a constructive change claim. If a contract has a “changes” clause, making a change order will likely require the owner to distribute additional funds. This clause is designed to prevent the owner from requesting changes to the original plan without compensating the contractor for executing them.
Taking it one step further, if an owner requests a change that alters the scope of a project, it can be considered a cardinal change.
Changing the scope of a project is akin to changing the project itself and a contractor can request that their agreement reflects that. Cardinal change claims can lead to adjustments in the overall level of compensation.
If you’re a general contractor and you need to file a claim, it’s critical that you seek proper representation. Our Orlando construction attorneys can assess your situation and help you make the best decision.
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.