Construction law governs the building process from bidding to negotiation, drawing up of contracts and subcontracts. It comes into play when there are defects with the construction or some form of breach of contract, such as delay in the construction or unauthorized changes to the design. The parties involved in construction disputes or litigation can include developers, builders, architects, contractors, sub-contractors, suppliers and importers or manufacturers of the construction material.
Would you like to know more about the laws surrounding construction and businesses? Our business lawyers can help. Contact a business law attorney near you today for more information.
Listed below are a few things to keep in mind before getting into a construction project:
The construction contract is the most important part of safeguarding your interests before getting into a project. Make sure it has the right clauses, such as a termination for convenience clause which allows the owner to terminate a project without liability if it is not going as promised. Ask contractors for performance bonds which guarantee completion. Similarly, the contractor can insert a changed conditions clause which removes liability for risks to the project because of unforeseen changes.
Site investigation is required to ensure both owner and contractor agree on the conditions under the project starts. Despite the contracts and clauses, all parties involved need to get comprehensive construction insurance coverage. Construction companies can get all-risk insurance or a limited version in the form of project insurance. Necessary zoning permits and other licenses need to be applied for and approved.
Do you have legal questions regarding construction and business law? Our business law attorneys can help. Contact a business lawyer in your area today to learn more about how you can receive legal representation regarding construction and your business.
Did you know?
Contractors have a right to lien on property they build.
If the owner does not pay labor and material costs, construction law allows the contractor to place a lien on the property. The contractor cannot refuse to pay sub-contractors because the owner has not paid.