When parties enter into a construction agreement, both parties commit to the terms of the agreement. However, if one party fails to perform in accordance with the agreement, they have breached the contract, which may cause the other party harm.
Many contract disputes in Colorado occur when parties do not agree on the meaning of certain provisions of the contract. Common construction contract disputes involve:
- Scope of work: There may be a dispute as to whether the agreed-upon work was completed and whether the quality of the work was up to par.
- Modifications: Disputes may arise as a result of inflated contract prices set to account for any possible project modifications.
- Delays: if the project is not completed by the date listed in the contract, the other party may suffer significant financial damages and harm to their business.
- Payment: Payment issues often arise as a supplemental issue to a breach in some other form (work delays or stoppages, unsatisfactory performance, etc.). For example, one party may refuse to pay the construction company because it failed to use the materials specified in the contract.
Addressing construction contract disputes
There are many ways to address a construction contract dispute, and not all of them require filing a lawsuit. Some methods used to handle the dispute may include:
- Negotiation: Parties meet to address the issue.
- Mediation: Parties meet with a third-party mediator to work out a settlement.
- Arbitration: A panel of arbitrators (e.g., a panel of three experts) will listen to the evidence and make their determination.
- Litigation: Filing a lawsuit in court and presenting your case in front of a judge or jury.
While many disputes are settled outside of the courtroom, some do require construction litigation. If you find yourself in the middle of a contract dispute, an attorney specializing in construction law may be able to help.