Hiring a construction lawyer is essential if you want to stay out of disputes related to your projects. From drafting contracts to taking care of the initial bidding process, building and construction lawyers are aware of the potential conflicts that clients may face. Some of the most common types of cases that they usually deal with are as follows:
1. Enforcing mechanic’s lien
A person hires you to renovate his property. According to the mechanic’s lien, it’s his responsibility to pay for the materials and services. But sometimes, property owners may fail to pay for these expenses. You can talk to your construction lawyer and enforce the lien.
The lien contains an agreement that mentions all the details of the project, such as materials required, total cost of the materials, number of laborers who will work, their daily wages, and approximate turnaround time.
You need to attach a financial claim with the lien and send it to the property owner. Later, if the owner fails to pay the total amount, your lawyer can start a court proceeding and enforce the lien. Usually, the court decides to sell the property to meet your project’s expenses.
2. Defending construction delays
Construction delays are pretty standard, especially in commercial projects. Sometimes, you have to deal with obstacles that push back your turnaround time. However, some property owners may not listen to your reason for the delay. They may sue you for not finishing your job on time.
Instead of agreeing to what they say, you can fight the case and provide reasonable reasons for the delay. Your lawyer will list down all the reasons that led to the uncertainty and present the case in such a way that proves your helplessness and convince the judge to provide a favorable verdict. These cases usually show the opponent withdrawing his case and not making claims against your workers for not finishing their job on time.
3. Defending constructive acceleration
Sometimes, the property owner may not provide you with a time extension even after giving reasons for excusable delays. Some examples of excusable delays are adverse weather conditions, labor problems, change in design as requested by the owner, or any other cause of uncertainty that you couldn’t foresee before starting the project.
You should provide a notice to the owner in advance about the delay and state the reasons. If the owner disagrees and decides to sue you, you can defend your case by hiring a building and construction lawyer.
How to calculate damages in construction contracts?
The court calculates damages in construction contracts in two ways: diminution-in-value and cost-to-complete. The diminution-in-value method involves the losing party paying the difference in value between the project as discussed in the agreement and where the project currently stands.
On the other hand, the cost-to-complete method involves the losing party paying for damages or paying the total amount of the project if he wants to replace the entire design.
Therefore, discuss the reasons for the dispute with your lawyer and see what type of damage the owner may have to pay if he loses the case.