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How to Protect Your Company During Construction Litigation


Litigation is a contractor’s nightmare for a variety of reasons. If your company is involved in litigation, that means that there is a chance that you could face significant penalties or other legal issues. This can also affect your reputation in the industry, making it harder to get work in the future. While litigation may be a major problem for your company, it doesn’t have to be. Many construction companies partner with Denver construction litigation lawyers to find ways of protecting themselves during construction litigation. In this article, we’ll discuss how to protect your company during construction litigation.

Related: 4 Options to Try Before Pursuing a Construction Litigation

Don’t Admit Fault

One of the most important things that you can do to protect your company during construction litigation is to avoid admitting fault. An admission of fault to work against you and your case as the opposition can use it as evidence to help prove that you’re responsible. Whether you are responsible or not, do not admit fault if at all possible. This will make it possible to continue the case and give you a chance for a judgment in your favor.

In many states, you do not have to be at fault for the dispute to be able to resolve it. Many construction companies offer to help resolve the problem so that everyone can move on. This gives you a measure of control over how the problem is fixed and how much effort or cost you will invest in the solution. If you admit fault, the other party is likely to follow through with a lawsuit and have evidence of the need to win that lawsuit. If you’re trying to find a way to resolve the problem without admitting fault, ask Denver construction litigation attorneys for assistance. They can help you find a solution that does not have to end in litigation.

Related: The 7 Phases of Construction Litigation

Keep Documents

Documentation is essential in handling disputes and litigation. During the course of a construction project, a lot of documentation will be created. While it may not seem that all of it is necessary, specific pieces of documentation can be highly beneficial if you find yourself in a dispute. To prevent future problems, establish a document collection system where you collect and keep all of the most essential documentation for your projects.

You should already have a system for keeping things like invoices, contracts, and change orders. However, it’s also important to keep correspondence with project teams, legal documents, and other documentation that can be essential if a dispute develops. Many companies use digital systems to keep copies of the documentation that they need online. This makes it easier to keep a large amount of information and also serves as a backup system in case something happens to the original documents


Related: Must-Have Litigation Services for Subcontractors

Determine Liability

Liability is at the heart of every dispute and legal proceeding. If you are liable for a problem, then you will be held responsible for providing a solution. While it is easy to understand that you could be held liable for your actions, it is harder to understand exactly what you can be held liable for. This is why projects begin with contracts.

Review your contract and the circumstances of the situation to see if there is a clear implication of who is responsible for the situation. You may find that you are not liable for the situation, which means that any legal action against you will likely result in your favor. If you are not sure what your liability or risks are in a specific situation, call one of our Denver construction lawyers to partner with and provide clarity on your specific situation.

Recruit Help

Handling litigation on your own can be difficult. Legal processes tend to be complex and the stakes are usually high. If you want to raise your chances of having a better outcome, recruit help from lawyers and other resources that can support you. For example, a Denver construction attorney can help you understand legal processes and guide you through them so that you can avoid many of the major mistakes that some companies make.

Another source of help might be your insurance company. Most construction companies have some kind of insurance provider that has a detailed understanding of construction law. Your insurance company should be able to tell you what your liabilities and risks are in specific situations. This can help you understand how to resolve situations without suffering huge penalties and other possible problems.

Fulfill Contracts

Many of the legal problems that construction companies face have to do contract disputes. Disputes arise when subcontractors and property owners feel that the company violated its contract in some way. If you want to be sure to avoid legal problems, make sure that your company fulfills its legal obligations outlined in its contracts. 

Through effective communication and documentation, it is possible to prove that your company successfully fulfilled its obligations if you are ever pulled into litigation. Have a Denver construction attorney review your contract with you to make sure that you are effectively fulfilling every obligation within the contract. That way, you will have a better understanding of the situation from a legal standpoint.

With proper planning, legal disputes do not have to have a major impact on your company. You can easily reduce your risk of ending up in a legal dispute by taking the steps ahead of time. If you have questions about legal proceedings, liability, and contracts, contact a Denver construction lawyer from Cotney Construction Law.

If you would like to speak with a Denver construction dispute lawyer, please contact us today.

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.