Ocala, FL Breach of Construction Contract
Construction projects are quite expensive and significant investments, which is why contracts are useful. Construction contracts ensure that both parties uphold their end of the deal. They may be used in the relationship between the project manager and a construction company or between various construction companies (subcontractors for specific projects). If any party is unable to execute their end of the contract, it is considered to be a breach of contract. In this case, the other party is able to sue for damages. If you believe you might have a breach of contract claim or another party is suing you, contact the attorneys at Schatt Hesser Mcgraw. Our Ocala construction lawyers will fight hard to make sure your voice is heard.
What Constitutes a Breach of Contract?
When one party is unable to deliver their portion of the contract, they will be found guilty of breaching the contract. If they are the property owner, this means they were unable to provide adequate funds to finance the completion of the project. The construction company can also be found guilty if it is not able to complete the project, does not finalize the design according to the agreed upon schedule or produces a poor quality product. If subcontractors are involved, one party may prevent another from being able to perform their duties. For example, an expert in insulation or plumbing may have been hired but if they do not finish their task, the general contractor will not be able to complete the rest of the construction project. It should be noted that both verbal and written contracts are binding, but it is always best to get your agreement in writing. A hard copy prevents any party from forgetting about additional tasks or misunderstandings.
Calculating Damages in Breach of Construction Contracts
There are two ways that damages can be computed: cost-to-complete and diminution-of-value. The cost-to-complete measure is typically used when a project is not completed or displays poor workmanship. The damages paid will be calculated from the amount of money that will be required to complete or redo the project. The other option is the diminution-of-value method, which is traditionally preferred if a significant amount of the construction is already completed. It requires the losing party to pay for the difference between the value of the current state of the project and the value of the product that was originally outlined in the contract.
Different Types of Monetary Damages in Florida
If one party is guilty of breaching the contract on a construction project, the other party is able to pursue legal action. In Florida, your legal counsel will advise you on whether to seek liquidated damages or compensatory damages. Liquidated damages are typically outlined in the contract. This choice is preferable if the amount described in the contract is close to the actual cost of damages or if it is too difficult to estimate the actual cost of damages regarding the project. Compensatory damages intend to provide the party seeking legal action with the monetary funds they would have received if the project had been completed according to the contract. This type of damages can include consequential damages as well, which includes compensation for any indirect costs the plaintiff may have suffered because the of the breach of contract.
Breach of Construction Contract Attorneys in Ocala, FL
Contract laws can be quite complex and can vary from state to state. However, a construction attorney in Ocala, FL can help navigate these laws in your favor. If you are seeking to sue for damages when another party is guilty of breaching your contract, we can help you get the compensation you deserve. If another party is pursuing legal action against you for the same reason, we will help reduce your penalties as much as possible. Contact us at Schatt Hesser Mcgraw today to learn about your rights and to get the best attorneys in Ocala, FL on your side.