Contracts signify the promises and consent between two parties who agree to work in coordination on a project. However, if either party breaches or does not fulfill the said promises as outlined in a formal contract, the other party can hold them accountable. It is common for things to go not exactly as planned; however, business dealings do not have enough room for mistakes. Therefore, it is vital to take precautionary measures to protect your business. One such way is outlining the agreements in a contract. It will not only make your partner legally bound to abide by his commitments but also gives you a chance to claim damages in case things go haywire.
Here are four reasons that cause construction companies to end up in legal troubles. You must be aware of the construction company’s litigations to avoid them or sue your partner if they do not live up to their claims.
1. Workplace Injuries and Occupational Diseases
Today, construction companies are bound to abide by strict safety protocols. But still, mishaps occur now and then at construction sites due to several reasons. When labor gets injured or catches a disease such as mesothelioma while working on a project, several aspects are taken into consideration to determine upon whom the liability must lie. Some of these include the use of personal protective equipment or the use of banned materials. Today, many construction companies use harmful materials such as asbestos, brick slips, lead-containing materials, etc., in various projects that significantly affect workers’ health.
However, if the workers did not have adequate knowledge of safety precautions, then the liability falls upon the owners of the construction company. Implementing solid safety measures on the project site is mandatory for the construction companies. If they fail to fulfill their job in training their workers and providing them with acute safety equipment, then it gets improbable for the company to avoid litigation.
2. Quality of Construction
Quality of construction is essential for several reasons, as a poorly constructed building poses various threats to anyone who enters it. It can further lead to fatal accidents and other catastrophic repercussions. If a newly established building does not pass the inspection tests by the owner, the blame is most likely to fall on the constructor.
There could be plenty of reasons for poor quality construction, for instance, unskilled labor, cheap construction material, inappropriate site inspection, last-minute changes in plan, etc. It is worth mentioning that in case the contracting party agreed upon the usage of low-quality materials either due to low budget or some other reason, they would also be held accountable for any such repercussions. As a builder, it is wise not to agree to any such agreements or fix the problem as soon as you realize them to avoid litigation.
3. Construction Project Delays
Construction delays that occur due to an unnatural/deliberate cause can lead to litigation. Most of the time, construction delays are due to weather changes, safety reasons, labor issues, over costs, and complaints from the neighboring dwellers. Most delays are indeed the contractor’s fault, for they can still lead them to face penalties and lawsuits.
There are many ways to prevent the problem in the first place. For example, the contractor must visit the site and examine the surroundings to resolve any safety or disturbance issues that might arise from the neighborhood areas during the construction period. In addition, it is best to fix any permit issues before entering the contract to save yourself from unwanted fines.
4. Payment Issues
Generally, upon completion of the project, most contractors do not pay the agreed compensation for the damage or bad management in the project. In scenarios of nonpayment, you have to deal with long documentation processes and unending arguments. However, if a customer has a copy of an initial agreement with the contractor, he or she can easily pursue a standard lawsuit against them. Moreover, if the dispute persists, the contractor would not be able to transfer or sell the property to any other person until the court clears the case. A little callous attitude towards the project by the contractor might result in prolonged disputes and lawsuits.
Generally, conflicts are a part of any industry. In cases where the issues remain unresolved, it is best to involve legal authorities to sue those accountable for your loss. Workers often take legal action against their employers when they feel that the company has exploited them in their responsibilities due to unjust orientation.
Today, many construction companies have to deal with lawsuits due to their negligence to employee safety, quality of construction, delays in a construction project, or payment issues. Any such litigation might negatively affect the overall reputation of the company. Hence, companies need to take essential measures to refrain from any such case that might cost them hefty penalties.