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How to recover damages from a construction breach of contract

On Behalf of | Oct 1, 2021 | Construction |

If you have employed the help of a contractor to build a new home or place of business, there is always the possibility the contractor may damage existing structures or fail to follow through with the plan as the contract stipulates.

There can be several things that go wrong during a construction. The builder may go bankrupt, or they may have just negligently failed to complete a construction. Whatever the reason, there are a few ways one can go about getting reparations.

Contract solutions

If the contract demands a certain work required for payment, getting reparations can be as simple as refusing to make additional payments until work continues. This, of course, depends on the writing in the contract. The building contract may offer other alternatives specific to the company with whom you contract for reparations.

Out-of-court solutions

While jumping into a lawsuit may be the first thing that comes to mind, there are resolutions that can be made outside of court.

Resolution through mediation

For one, the contractor and owner may choose to mediate the dispute with a lawyer and reach an out-of-court settlement. This solution allows both parties to work together to resolve grievances. It is a highly cooperative method that could save both parties money in legal fees and time spent preparing for court.

Resolution through arbitration

If both sides are willing to submit to an arbitration award, resolving a dispute using an arbitrator can be advantageous. Like mediation, arbitration can help companies save time and money. The returns may be better for both parties as they both mutually agree to leave the decision-making up to a third party. This takes control away from both parties, which may not be desirable.