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Construction contract disputes

It is not uncommon to have contractual claims and disputes occur during a construction project. Often, these contract disputes can lead to an overrun of expected budgets and result in missed deadlines. Georgia readers may be interested in an article that describes the common reasons that these issues occur and several ways that they can be resolved.

One of the most commonly seen reasons for a construction contract dispute is changes that occur in the contract drawings. These changes can be due to additional costs not originally covered in the contract, small amendments to the work and work that may be found to be defective. Another reason for many disputes is due to poor documentation or coordination of the original drawings. This can result in changes during construction that cause cost overruns or time delays.

When disputes occur, it is generally over where the blame for any increased time or costs will land. There are many options to resolve these disputes, such as formal negotiations, arbitration and formal (binding) arbitration, and litigation. Some construction contracts have an arbitration clause, and in those cases, parties will not be able to use litigation as a means of dealing with a dispute.

Litigation brings the parties to the courtroom, where a judge makes the final decision. It can be critical in a litigation scenario that the parties have all documentation associated with the construction project available. This can include telephone logs, project notes, meeting minutes, and the original drawings and plans.

Litigating a contract dispute can be a complex process, so most in Georgia who are planning to go this route seek the help of experienced business litigation attorney who is experienced in handling contract disputes. No one enjoys dealing with a contract dispute, but the best time to do so is immediately. Waiting until the project is almost complete can make it even more difficult to obtain the outcome one is hoping for. Instead, one should deal with issues as they arise and obtain legal assistance as soon as possible.

Source: fmlink.com, “Construction Project Contract Disputes“, Accessed on Nov. 9, 2016

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