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Contract terms can prevent construction litigation

| Jul 22, 2020 | Construction Litigation |

Whether one is building a home or employed to construct a home in Louisiana, having a construction contract is a must. These legal documents should not be rushed through and completed without thought and care. If a contract is done right, construction litigation may be avoided even if issues arise.

A basic construction contract will spell out what work is to be completed, any known risks, how much the project will cost and the terms of payment. Sounds like a lot, but there is even more that one might want to include in the agreement. Such as:

  • The time frame
  • Penalties for late payments
  • Information on materials to be used
  • Acceptable dispute resolution methods

Several more things can be added to this list, but the overall gist is the details, both big and small, matter. Once signed, a construction contract is legally binding. Changes can only be made if both parties agree to the adjustments. This is why getting it right the first time is crucial.

Few residential construction projects in Louisiana and elsewhere go exactly as planned. Disputes arise and breaches of contract occur, among other things. When a project fails to move along as planned or the terms of the contract are not followed, if acceptable dispute resolution methods are included in the contract, the offended party will already know what he or she has to do resolve the matter — such as utilize arbitration or mediation to reach a settlement rather than take the issue to court. Avoiding construction litigation is the goal, and a solid contract can help achieve that goal in many cases. If, however, litigation seems absolutely necessary to resolve a construction dispute, legal counsel will do everything possible to achieve the best outcome for the client.