Construction projects generally involve tight deadlines, written contracts, and multiple contractors or designers to complete the work. Construction litigation risks can arise from unresolved disputes. The risks of costly litigation tend to increase for high-value projects due to their associated expenses.
Working with a construction attorney in San Francisco, CA, can help you prevent litigation in large-scale infrastructure work and other high-value projects. Here, our knowledgeable team at Furukawa Castles Karic LLP explains the litigation risks for complex construction projects in California.
How Hiring a Construction Litigation Attorney in San Francisco Aids in Managing Complex Construction Disputes
The more complex a construction project is, the more likely it is that a dispute will arise. Detailed contracts, tight deadlines, and coordination between multiple parties are just some of the elements that contribute to successful projects. Unfortunately, costly disputes can arise when professionals fail to meet client or shareholder expectations.
A construction litigation attorney in San Francisco can help prevent payment disputes, defective work, and project delays from escalating into a costly legal situation. These professionals use their knowledge to protect their clients’ financial interests, outline contractual obligations, and pursue favorable outcomes in disputes.
Why Construction Litigation Occurs
Although construction firms, engineers, and other professionals have a legal responsibility to develop compliant structures, problems may still occur. Construction litigation risks vary, but common issues include the following:
Construction Defects
One of the leading construction litigation risks for high-value projects is construction defects. Under California’s Right to Repair Act, property owners can sue for numerous defects, including electrical issues, structural failures, and water leaks. Building code violations are also considered construction defects.
Property owners may claim negligence against the construction firm, its subcontractors, or designers for material defects, poor craftsmanship, or design flaws. They may also claim strict liability or breach of warranty.
Non-Compliance With Essential Regulations
Regulations and compliance requirements are constantly evolving. Still, construction companies have a responsibility to understand the local building codes, labor laws, environmental regulations, and safety standards. Failing to comply with current regulations can lead to legal penalties, hefty fines, and project delays, which can trigger additional disputes.
Payment Problems
All contracted professionals involved in a construction project are entitled to timely payment upon completion of their work. Failing to make full payments on time could result in stop notices, mechanic’s liens, or breach-of-contract claims.
Legal or Contractual Complications
Poorly written contracts are among the biggest risks in construction litigation. Property owners and construction firms must clearly outline the project’s details in the contract, including general timelines, payment schedules, and material selections. Disputes regarding project delays and construction defects often stem from poorly drafted contracts.
How Can Professionals Minimize High-Value Project Litigation Risks?
Hiring a skilled construction litigation attorney can help minimize litigation risks. Risk mitigation requires careful planning, which your attorney can assist with. You can also do the following:
Draft Clearly Written Contracts
Avoid contract-related construction litigation risks by drafting comprehensive contracts. All contracts should cover the basics, including:
- The scope of the project, including payment terms and scheduling
- Dispute resolution clauses, such as arbitration or mediation
- Address change orders
- Procedures governing contract termination
Your attorney can review your contracts to prevent misunderstandings.
Document Everything
The contract isn’t the only documentation you should have for large-scale construction projects. Ideally, you should document and retain everything from change orders to progress reports. Documentation provides evidence to support your defense if a dispute arises.
Ensure Regulatory Compliance
Every construction project must comply with applicable California building code requirements. Contractors must also comply with OSHA regulations and obtain draw permits when required. Conducting regular site audits and effectively training your staff helps ensure compliance.
Address Defects Immediately
Although quality assurance measures can reduce the risk of defects, problems can still arise. If someone makes a claim alleging a defect, address it immediately. Contact your attorney to investigate the claim and determine liability.
Avoid Construction Litigation Complications With Legal Counsel
The success of your high-value projects relies on careful mitigation of common construction litigation risks, such as construction defects and faulty construction contract liability clauses. At Furukawa Castles Karic LLP, we help construction companies and other professionals by using our construction law experience to review contracts, respond to defect notices, and provide legal representation in and out of the courtroom.
Strategic risk mitigation in construction is just a phone call away. Request a consultation at Furukawa Castles Karic LLP in San Francisco, CA, by calling (415) 510-2823, and let us help clarify your rights.