7 Types of Disputes That May Be Addressed Through Construction Litigation

 Posted on May 17, 2023 in Uncategorized

Companies that are involved in the construction industry may encounter a variety of disputes that require legal action to resolve. These disputes may be related to contracts, payments, defects, or multiple other issues, and if agreements between the involved parties cannot be reached, construction litigation may become necessary. This type of litigation can be very complex, and it may involve a number of different stakeholders, including property owners, contractors, subcontractors, suppliers, and insurers. By understanding the types of disputes that may be addressed through construction litigation, stakeholders can ensure that they are prepared to navigate these situations.

Common Construction Disputes

• Delays: During construction projects, delays can occur for various reasons, including bad weather, labor shortages, poor-quality work, or unforeseen circumstances. If a delay occurs, it can have a ripple effect on the entire project, leading to financial losses for all stakeholders. Legal action may be necessary if a party fails to fulfill their contractual obligations or takes other actions that may lead to a delay in the completion of the project.

• Defective work: If the work performed on a construction project did not meet the required specifications, if substandard materials were used, or if building codes were not followed correctly, these issues may lead to serious safety hazards and costly repairs. These disputes can sometimes arise after a project is completed and defects are discovered, or they may occur while a project is in process, and work-related issues may lead to delays or additional costs. In these situations, a party may need to take legal action to rectify defects or to recover damages.

• Breach of contract: During a construction project, one party may fail to fulfill their contractual obligations. This may lead to financial losses, delays, and other legal issues. A breach of contract dispute may arise if work was not completed on time, if work did not meet construction standards or follow design specifications, or if other aspects of an agreement were violated. In these cases, legal action may be taken to enforce the terms of the contract or to hold the breaching party responsible for losses suffered by the other party or parties.

• Scope of work and change orders: Requested changes to a construction project can lead to confusion about the scope of the project and whether adjustments will result in delays or other issues. Change orders may be made to modify the original scope of work, update design specifications, or change contract terms. Disputes related to change orders may arise if they affect costs, timelines, or quality standards. Litigation may be necessary to resolve these disputes and ensure that a project can be completed successfully.

• Payment disputes: These issues typically arise when one party fails to pay for services or materials provided by another party. Disputes may also involve late payments, refusal to pay for completed work, or disagreements over costs related to change orders. Construction litigation may be used to recover unpaid bills or to resolve disputes over the amounts or methods of payment.

• Labor and employment issues: These may include disputes over wages, discrimination, wrongful termination, or workplace safety violations. Construction companies, property owners, developers, or other parties involved in a construction project may become involved in litigation to address these issues and ensure that labor laws have been followed correctly.

• Insurance Disputes: Issues related to insurance coverage or claims may arise during a construction project. These disputes may involve denied claims, underpayment of claims, or disagreements over the terms of coverage. Business owners, property owners, real estate developers, or insurers may need to resolve these issues through litigation.

Contact Our Cook County Construction Litigation Attorneys

At Teller, Levit & Silvertrust, P.C., we provide experienced, dedicated legal representation for parties involved in legal disputes related to construction projects. We work to help our clients take proactive steps to prevent conflicts, while also providing guidance on the best methods of resolving disputes that may arise. To learn more about our services, contact our Chicago construction litigation lawyers at 312-922-3030 and set up a consultation.

Sources:

https://www.wealthmanagement.com/development/5-most-common-causes-construction-disputes

https://www.rakenapp.com/blog/types-construction-disputes-avoid

https://gocodes.com/construction-disputes-causes/