Protect your business against defect claims and lawsuits

Protect your business against defect claims and lawsuits

| Dec 6, 2020 | Business Law |

As a contractor, you know that the success or failure of a building project is in your hands. If something goes wrong, you could end up with a very unhappy client — and a project that is delayed or otherwise ruined.

Construction defects cost you time and money, and they could open you up to litigation. That’s why it’s very important to have strong contacts with all your suppliers, contractors and clients. Those contracts should address what happens if a construction defect does occur.

Why do construction defects happen?

Defect claims can vary. For the most part, construction defect claims state fall into a few distinct categories: 

  • Materials used in the project were found to be subpar (and the client didn’t authorize or agree to their use)
  • Some part of the construction design was not planned out properly and the building is damaged as a result
  • The workmanship that went into the project itself was inferior or far below what the client agreed on

When a client is angry because of a construction defect, you must be able to defend yourself and your company. A poorly handled lawsuit could impact your reputation for years to come and harm your bottom line. Your contracts with your suppliers, subcontractors, architects and others are your first line of defense. They can dictate who bears the responsibility for any losses, how the dispute must be resolved and more.

While a strong defense can help you protect your company, protect your reputation and help you work toward a satisfying resolution. Having strong contracts is even better, however. An experienced attorney can help you understand what you can do to manage your business risks in construction.