What are the types of disputes that arise during construction contracts?
Construction disputes can arise during any stage of a construction project, from the bidding stage to varying interpretations of contract requirements and faulty project performance. In Texas, disputes typically boil down to fraud, defects in construction, nonperformance, contract violations, and design flaws. Fraud disputes in construction are usually based on misrepresentations or omissions of fact. For example, a builder may not disclose a deficiency in a building design or material used in the project, or an owner may misstate the budget for the project. Defects in construction disputes occur when the completed work does not meet the standards of the contract. This could include faulty craftsmanship, poor design, inferior materials, or errors in the work performed. Nonperformance disputes occur when one of the parties fails to perform a task according to the contractual agreement. This could include an owner not paying a contractor on time, or a contractor not meeting the deadlines outlined in the contract. Contract violations disputes arise when either side contravenes an express contractual provision. For instance, if the contractor exceeds the budget without written consent of the owner, this may be considered a breach of contract. Design flaws disputes come up when the design of the project is found to be inadequate or faulty. This could include structural errors, safety issues, and aesthetics. In order to prove a design flaw, the non-breaching party must provide expert testimony and/or other evidence to support their claims.
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