As a general contractor or the owner of a construction company, you may find yourself involved in a legal case involving a contract breach. This could be an alleged breach of a contract that you signed with a homeowner or a commercial property owner. It could also be a contract breach with a subcontractor that you hired.
To see how these cases work, let’s take a quick look at three examples of potential breaches.
Failure to perform
First and foremost, the other party may fail to perform their obligations under the contract that they agreed to. Say that you hire an electrician as a subcontractor, but they never show up on the job site. The entire process grinds to a halt, as your other workers cannot proceed until the electrical work is done, costing your company time and money.
Failure to perform on time
A similar issue is when deadlines are missed. Maybe the electrician you hired as a subcontractor eventually shows up, but they are a week late getting started on the job. This still sets you behind and could damage your company’s reputation.
Violation of the terms
Finally, construction contracts will often have explicit terms for what type of work is supposed to be done, what materials are supposed to be used and things of this nature. If the subcontractor uses the wrong materials or does not adhere properly to the building plans and designs, even though they technically did work on the job, they could still be in violation of that contract.
Finding a resolution to a contract dispute can be complex, and it may help to work with an experienced law firm at this time.
