What happens when a contractor fails to deliver?

When a contractor fails to deliver a project in Texas, the non-breaching party has the option to pursue a civil lawsuit in a construction case. This means that the other party can take the breaching party to court and file a claim for damages. Depending on the severity of the breach, the non-breaching party can seek damages for any financial losses caused by the breach, as well as compensation for the cost of repairs and/or completion of the failed project. The non-breaching party can also pursue a claim for breach of contract, seeking specific performance and/or monetary damages. Specific performance is an equitable remedy sought when an actual restoration of the contractual arrangement is not possible, such as in cases of breach of warranty. Monetary damages, on the other hand, can be awarded in cases of breach of contract or tort, when a monetary value is assigned to the breach of contract or tort. The non-breaching party may also be able to file a claim for negligence against the breaching contractor. This claim seeks to hold the breaching contractor liable for failing to comply with industry standards and can result in punitive damages if it is proven that the contractor acted with gross negligence. In Texas, the non-breaching party usually has four years to file a civil lawsuit and, depending on the case, may be able to receive a settlement before the case goes to court. However, the parties may also try to reach an agreement through mediation before the case is tried in court.

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What happens when a contractor fails to deliver?

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