What are the legal remedies available when a construction project runs over budget?

When a construction project runs over budget in South Dakota, there are a variety of legal remedies available. One remedy is for the owner to turn to the courts to seek compensation from the contractor for any damage that has been caused. If the contractor is found to be at fault, a judge may order them to pay the owner for any extra costs or for the time expended in remedying the situation. Another remedy is for the contractor to seek additional payment from the owner in order to cover their costs. The contractor can argue that the project has been delayed or that certain materials are needed in order to bring the project up to code. The contractor may also argue that they have encountered more risks or costs than initially anticipated. In some cases, the owner has the option of seeking a contract modification. This is a legal agreement which will allow both the owner and the contractor to reach an agreement regarding how the additional costs should be shared. Finally, the owner may choose to hire a third party mediator to resolve the dispute. A mediator will listen to both sides, investigate the project, and make a decision that is fair for both parties. This remedy is often used in construction disputes and can help to avoid legal action.

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What are the legal remedies available when a construction project runs over budget?

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