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Construction litigation stems from contract issues, lack of pay

| Sep 23, 2019 | Construction Litigation |

Even the most well-meaning business relationships can hit snags. In some cases, those snags are significant and can lead to serious disputes. If a construction project faces issues, it is possible for construction litigation to occur, commonly due to breach of contract.

Louisiana readers may be interested in a dispute that is currently underway in another state. Reports indicated that a construction project for a city hall complex has led to conflict with the companies that designed and built the structure. Apparently, Holder Construction claims that the city has not paid any invoices for approximately a year and owes the company $2.6 million. However, since the company sued the city, the city has countersued the construction company for breach of contract, negligence and fraud.

After the city began utilizing the complex, multiple issues were discovered with the construction, including improperly installed low-voltage wiring and roof leaks. The construction company indicated that they were working to address certain issues but had been unable to make permanent fixes to some due to continuing conflict with the city. However, the city claims that it can withhold twice the amount of the repairs until they are completed.

Construction projects are not always as straightforward as most people would hope, and when issues are discovered, the parties involved could end up in disagreement about how to handle the situation. As this case shows, construction litigation is sometimes the result. If Louisiana companies find themselves in this type of predicament, they will certainly want to explore their legal options for finding the best way to handle it.