If you are thinking about developing or renovating real estate property in Florida, it’s a good idea to do some research on the construction industry. One good place to start is common causes of construction disputes.
If you have a good relationship with your builder, then you may have already decided that a construction dispute is unlikely. However, knowing the causes of construction disputes can help you tailor your contract, so that the most likely reasons for dispute are mitigated against. With that in mind, here are some of the most common reasons for construction disputes.
According to a study published on Science Direct, finances is a common reason for dispute. This may be due to delayed payments from the client. It is also reasonable to assume that failure to pay the builder on time may lead to lawsuits from his own subcontractors who are affected by delayed payments.
If you are familiar with the construction process, then you know the transaction usually begins with a proposal. This proposal typically includes the design, budget and time estimate. However, it is not uncommon for projects to fall behind their completion time. Not surprisingly, then, delays in work progress and late giving of possession are two more common reasons of construction disputes.
If a client was expecting a polished final look and walks into a building that still requires more work to bring it to the final goal he had in mind, he may sue the contractor for leaving the project incomplete. Some of the more specific reasons for common dispute causes that may reasonably lead to lawsuits for abandonment include the following:
- Unrealistic expectations
- Design errors
- Inadequate or incomplete specifications
- Ambiguities in contract documents
Construction disputes are fairly common as client expectations and contractor delivery do not always line up perfectly. For this reason, both sides may benefit from air-tight contracts that detail the specifics of the projects and all the necessary deliverables. This helps to ensure that in the case of a dispute, there is a legally binding document illustrating the responsibility of both sides.
This information is provided to give you a general idea of the common causes of construction disputes and should not be interpreted as legal advice.