What types of disputes arise in construction contracts?

Disputes in construction contracts are disagreements between two or more parties over a particular subject. These disputes usually involve claims of breach of contract, non-payment, or unforeseen costs. There may also be disputes over the quality of materials, delays in construction, defective or incomplete work, or non-compliance with safety regulations. In Minnesota, disputes can also arise due to non-performance of the agreed terms of the contract, violation of fiduciary duty, or change orders, which are changes to the contract made after the contract is signed. The most common type of dispute occurs when one party fails to perform its obligations. This could be because the contractor fails to deliver on time or to the agreed standards, or because the owner has not paid the contractor for the work completed. In these cases, the parties may not be able to resolve the dispute on their own and must either enter into mediation or arbitration or take the dispute to court. Other disputes in construction contracts involve issues such as liability, indemnity, and warranties. Liability issues arise when one party claims the other is responsible for something resulting from the construction, such as a defective product or an injury on the job site. Indemnity issues involve one party claiming another is responsible for damage caused by their actions. Lastly, warranties arise when a contractor promises a certain level of quality or performance, and then fails to deliver. In these cases, the party seeking to enforce the warranty may take legal action.

Related FAQs

What is the difference between a joint venture and a partnership in construction?
What are the various types of contracts used in the construction industry?
What is the difference between a guarantee and a warranty in construction?
What is the difference between a contract modification and a change order?
What are the legal requirements for public bidding in construction contracts?
What are the remedies for failure to pay for construction work?
What is the legal process for enforcing a mechanic's lien?
What are the responsibilities of an owner when contracts are involved in the construction process?
What is a preliminary lien notice and when is it necessary?
What are the duties of a construction law attorney?

What types of disputes arise in construction contracts?

Related FAQs

Related Blog Posts