Business Law Representation That Respects Your Bottom Line

6 Types of Construction Claims to Get Acquainted With

On Behalf of | Feb 2, 2017 | Business Law, Construction Law, Contract Law

If you work in the construction industry – whether you are a property owner, a general contractor, a subcontractor, or a supplier – you know construction claims are very complicated.

In fact, these disputes can affect everyone working on a construction project. Likewise, they typically involve multiple parties.

Knowing what kind of legal disputes can arise within this industry is paramount as it will help you better understand your legal rights and responsibilities.

This way, you’ll be better equipped to defend a claim filed against you. Also, you’ll know when you have a right to solicit a legal action being taken against someone else.

So, let’s get straight to it and discuss six different types of claims which can arise within the construction industry.

6 Types of Las Vegas Construction Claims Which Concern You

1. Bond Claims

Surety bonds are required by some project owners to help ensure all parties involved on a construction project or who have contracts to supply materials will live up to their ends of the agreement.

In fact, there are several types of bonds routinely required on construction projects and each type of bond protects a certain group of people. Once the bond is in place, if the terms and conditions of the contract are violated, a claim aimed at the party who breached the contract can be pursued.

2. Construction Defect Claims

From significant cracks in the foundation of your property to corroded plumbing, anything can make the object of a claim.  If proven responsible, the builder/developer can be held accountable for defective conditions encompassed in the claim.

3. Mechanic’s Lien Claims

Property owners can be held responsible for not paying their general contractors or for their general contractor’s non-payment to its subcontractor.

If someone provides materials, equipment, or labor on a construction project in the state of Nevada and they provide the proper pre-lien notice, they can file a lien against the property of the owner if they are not paid for their services. This is true even if the owner has paid the general contractor in full.

However, there are ways for the owner to protect himself/herself from the general contractor’s irresponsible actions.

Read more about this type of claim here.

4. Breach-of-Contract Claims

These types of claims deal with individuals or companies failing to perform their duties and obligations relating to a valid contract. A breach of contract is a failure – with no legal excuse – to fulfill any promise which constitutes all or part of the contract. If that failure causes the other party damages, the non-breaching party can pursue a claim against the breaching party to get compensated for the breach.

5. Delay Construction Claims

Disputes related to impacts on the construction schedule are pretty common in the construction industry. Delay claims relate to unplanned events or circumstances that interfere with the progress of work. More often than not, these claims are pursued when they result in delays and disruptions of the overall project schedule and completion deadline.

6. Payment Disputes>

There are various causes which can lead to payment related claims, such as:

  • delay in payment of security deposit or retainage
  • failure to account for all of the costs on the project
  • unreasonable deduction of money from final bills

Where to Take It from Here?

Construction is a complex business. It requires the joint effort and coordination of many different entities. This often makes room for a variety of construction claims and disputes.

Managing and resolving them as they occur can be difficult and stressful for all parties involved.

To ensure the process is the least disruptive and costly as possible, consider working with a professional.

A lawyer with expertise in this area can offer you reliable advice and help you find the best possible legal solutions.

Facing an impending construction claim or just want to minimize the chances of a dispute occurring? Schedule an appointment with one of our attorneys right away.

You can also reach the Law Offices of Tony M. May, P.C. by calling us at 702-960-1270.