Construction Contracts – Disputes and Modifications
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Construction and renovation projects can be vital to the success of local businesses. As such, to prevent legal dispute, it is important that every deal whether brokered during a poker game or at a backyard barbeque, be in writing.
Changes and Modifications
Changes occur constantly during a construction project, and it’s almost inevitable that even the most standard project will encounter the need to deviate from the original project. Parties to construction contracts should include language that enables the parties to modify contract clauses – design, construction, price, time, scope of work – as changing circumstances require. California Civil Code §1698 states a written contract can be modified when the oral change order agreement is executed by the parties or if the change order is supported by new consideration. D. L. Godbey & Sons Const. Co. v. Deane (1952) 39 Cal.2d 429. Whether modifications in contracts are addressed through oral change orders or directives, it is critical that a construction contract require that any such changes be made in writing to prevent misunderstandings, lapses in memory and potential disputes down the road. Furthermore, California Civil Code § 1624 and Business and Professions Code §7159 require that real estate and construction contractors must be in writing.
Construction Contract Disputes
If contract modifications are not handled correctly it can lead to contract disputes. Construction contracts may lead to issues between the responsibilities of the parties, more specifically who is obligated to pay whom and for how much. Furthermore, disputes may arise over the performance of construction contracts during construction which must be addressed quickly to ensure the best outcome. If not, this may result in loss of profits and can trigger liquidated damages clauses be causing further delays, resulting in losses throughout the project.
In preparation for legal disputes, it is always important to refer to construction contracts on in the event of a dispute. Although construction contracts may not include such language, it is important to include a contract clause to provide for attorney’s fees. While most construction and real estate contracts focus on clauses such as scope of work, time frames, payment terms, and insurance; attorney’s fees is probably one of the most overlooked and important contract term. California Civil Code § 1717 states where a contract specifically provides for attorney’s fee, the prevailing party shall be awarded the fees incurred. Thus, although attorney’s fees may seem unnecessary, but when a legal dispute arises, it will provide much-needed relief.
Construction Contract and Dispute Law Firm
Whether it be assistance in drafting construction contracts or modifications to quickly address the issues and come to an agreement regarding interim solutions to minimize delays, interference with the work of others at a jobsite, an experienced Real Estate and Construction law firm like Arcstone Law can help. Our firm has helped clients when it comes to drafting, reviewing and negotiating construction contracts. Our lawyers have significant experience working with construction professionals and work to protecting our clients’ rights while securing their contractual rights.
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Furthermore, even though construction disputes are common, not all disputes may end in a lawsuit. Our attorneys focus on resolving construction disputes in the most cost-effective strategy available for our clients. Our firm utilizes strategies such as arbitration and mediation to timely resolve construction disputes. Mediation, in which our lawyers mediate the matter with the parties themselves or through the use of a third party. Arbitration, which is a court-mandated form of mediation using a third party where the parties must accept the resolution offered. Nonetheless, our attorneys have the knowledge and expertise to effectively use mediation or arbitration depending on the circumstances, or if necessary handle trial court litigation and appeal in state and federal court, when that is in our client’s best interest.
Give us a call today at 855-219-3333 to schedule a consultation with a licensed CA Real Estate Attorney.
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Arcstone Law was established as a Foreclosure Defense Law Firm helping homeowners sue the banks after the mortgage meltdown of 2008. During that time the efforts of our lawyers were recognized and published by the State of California as precedence for other attorneys to rely on. Today our team of lawyers have grown, and our practice areas now include contract law, purchase/sales, quiet title litigation, partition actions, bankruptcy, eviction law, probate, divorce law (where Real Property is at issue) estate planning, business law and personal injury.
We focus everyday on providing high quality legal representation for our community and we dedicate ourselves to our clients and their cases. Whether you need legal assistance in Eviction Court, Probate Court, Federal Court, Bankruptcy Court or Appellate Court, there is no challenge that our experienced legal team is not ready to assist with. We have won thousands of cases and obtained millions of dollars in judgments and settlements for our clients. Call us today to schedule your consultation with a licensed attorney.