In the first section of this two-part article, our Clearwater construction lawyers covered three primary reasons why a breach of contract claim is filed. This includes missed deadlines, work defects, and failure to perform the tasks in the agreement. It’s important for professionals to avoid these pitfalls, abide by the provisions in their contract, and act ethically. After all, misrepresentation can lead to many legal disputes including breach of the contract as well.
Generally, there are dozens of ways that either a contractor or owner can violate their contractual agreement. Of course, when one party violates a contract, the affected party will want to recover any damages caused by this breach. In this section, we will discuss the most common types of damages sought after in breach of contract situations. If you are a contractor that needs assistance with drafting, reviewing, or revising a construction contract, speak with a Clearwater construction attorney today.
The most popular form of recovery is when the claimant desires damages that were directly impacted by the alleged defect. In other words, the claimant desires to be reimbursed the total value it will take to repair the defects. If the defect is so significant that repairing it isn’t an option, the claimant will prefer the difference in value between the property with the defect and without the defect.
Although direct damages are the most popular form of reimbursement, if the work had been completed correctly, the claimant may have profited in other ways from the success of the project. For example, if an owner plans on renting a building to tenants, but a defect compromises this leasing date, it would be considered reasonable that the owner would be rewarded consequential damages for the impact of the defect as well. In other words, as long as the damages are reasonable and foreseeable, the claimant would be compensated for the lost revenue.
If the exact amount in damages is detailed in the contract, this is considered liquidated damages. This is a common provision used in many contracts to avoid litigation and to determine the fixed price that will be awarded to the affected party in the event of a breach of contract dispute. Similarly, recovering attorney’s fees during a dispute is another provision that can be included in the contract to ensure that litigation expenses are covered during a dispute.
If an owner refuses to compensate you for your work, a Clearwater construction attorney can file a breach of contract claim on your behalf. We are here to offer you assistance with any of your construction contract needs.
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.