Construction and engineering projects are complex and involve many different parties, including contractors, subcontractors, engineers, architects, and owners. Unfortunately, disputes and litigation are pretty common in these sectors and can have significant financial and operational impacts on all parties involved.
This blog will provide a straightforward guide to construction and engineering litigation and why you need legal representation to solve disputes quickly.
What is Construction and Engineering Litigation?
Construction or engineering litigation refers to the same phenomenon and are used to discuss mainly similar issues, so don’t get confused between the two.
Construction or engineering litigation is a lawsuit that solves disputes in court regarding the construction and engineering areas. These may involve contract disputes, defects in construction or engineering work, wrongful death, delays in completion, and other issues arising during the construction or engineering process.
Moreover, the legal process may include negotiation, mediation, arbitration, and trial to resolve the dispute.
Types of Legal Claims in the Construction and Engineering Sector
Below is the list of several different types of legal claims, which are vital for you to know whether you’re in the construction and engineering sector or are planning to enter.
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Construction Delay Claims
A construction delay claim is a request for additional compensation or an extension of the project completion date due to unforeseen circumstances or events that disrupt the construction schedule. These circumstances may be caused by a variety of factors, including weather, design changes, unforeseeable site conditions, disputes between the parties, or other issues that are beyond the control of the contractor.
Construction delay claims can have significant financial consequences for all parties involved in a construction project, leading to increased costs, lost productivity, and delays in the project timeline. As such, it’s essential for all parties to evaluate any delay claim carefully and consider the project’s potential impact.
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Construction Damage Claims
A construction damage claim is a request for compensation for damages that have occurred during the construction process. These damages may be physical damage to the construction site or the project itself, such as damage to buildings, structures, or equipment. They may also damage third-party property, such as damage to neighbouring buildings or utility lines.
Additionally, if a subcontractor does not have insurance coverage, you will become liable to pay for the damages.
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Differing Site Conditions Claims
Due to unexpected or unforeseen site conditions that were not disclosed or adequately addressed in the project plans and specifications, differing site condition claims arise.
Different site conditions can significantly impact the construction process, as they may require additional time, labour, and materials to address. In some cases, these different site conditions may also require changes to the project design or scope to accommodate them.
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Price Acceleration Claims
Price acceleration claims are typically made when a contractor or subcontractor is unable to fulfil the given work on time, due to which the owner’s budget increases as additional costs for labour, materials, and equipment are required.
Importance of Obtaining Professional Legal Representation
Legal representation can help identify and mitigate potential risks that may arise during a construction or engineering project, helping to minimise the likelihood of costly disputes or delays.
Furthermore, they ensure that the rights of all parties involved in a construction or engineering project are protected and can help resolve disputes that may arise in a fair and equitable manner.
So, it’s essential to seek legal representation to protect your rights and interests.