Legal

Minimizing Construction Claims Can Significantly Reduce Financial Pressure

Summary: Legal claims are inconvenient to construction projects, but knowing your rights and responsibilities will help navigate the issue if it arises. Read below for two common claims and how they affect your project.

When working on a project, any legal action is a big inconvenience. When working on a construction project, claims can create very large setbacks, which can lead to even more claims. Everyone in the construction industry knows how complicated and annoying claims can be, and will avoid them at all costs. Here are two common construction claims and how they may set your project back.

Bond Claims

Bonds are put in place by project owners to ensure that everyone holds up their end of the bargain, whether directly involved in the construction or contractors who supply materials. If a party violates the terms of the contract while a bond is in place, a claim can be pursued against said party. This can easily set back your project because 1) contract was violated so you may not have supplies to continue and 2) you have to deal with legal issues before resuming work.

Delay Construction Claims

Delays in the construction schedule might be the most commonly disputed issue in the construction industry. These claims are often the result of unforeseen circumstances that impede the work schedule, forcing the team to take another plan of action and change the original deadline. Ironically, having to deal with this claim is in and of itself a setback to the construction schedule.

Claims typically involve multiple parties, so avoiding is every construction project owner’s dream. However, knowing the different types of claims and how they affect your project will help you better understand your legal responsibilities. This way, you will have the tools to defend a claim against you, or know when to file a claim against someone else.

Blog submitted by Lyle Charles: Lyle Charles has worked in the construction industry for over 40 years and offers excellent construction claims management services. For more information, visit his website.