What are the types of disputes that arise during construction contracts?
Disputes in construction contracts are disagreements between parties that arise during a construction project. Construction contracts typically involve three parties: the owner, the contractor, and the designer of the project. In West Virginia, disputes typically arise during construction contracts because of misunderstandings of the terms and conditions outlined in the contract, disagreements over costs, and delays in completion of the project. The most common type of dispute in construction contracts is a breach of contract. A breach of contract occurs when one of the parties fails to fulfill their obligations as outlined in the contract. For example, if a contractor fails to complete the work on time, the owner may take legal action if the contractor is found to have breached their contract. Other common disputes include differences in interpretation of the contract, requests for additional payment, and defects in the completed project. Another type of dispute that can occur in construction contracts is that of a change order. This occurs when changes are requested to the project mid-way through construction. This could be due to unforeseen circumstances such as a new law or regulation that needs to be taken into account or changes to the design due to a contractor’s negligence. The parties must agree on a change order in writing before work can proceed, and it must be in accordance with the contract. Lastly, disputes may arise during construction contracts over payment. This may occur if one party does not make a payment when it is due, or the parties disagree on the amount or timing of payments. In such cases, the parties should try to come to an amicable agreement that is satisfactory for both sides. If this is not possible, legal action may be necessary to resolve the issue.
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