Breach of Construction Contracts – OnDemand


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Learn how to navigate the complexities of a breach of construction contracts.

Sometimes even the best laid plans go awry and the unexpected can happen on a construction project that could affect your bottom line. Payments may suddenly stop, there could be a major change in the conditions at the project, or your subcontractor may make a substantial mistake. Once that happens, you will need to move quickly to protect your rights and mitigate any potential losses. In this material, experienced construction litigation attorneys Mark B. Grzymala and Brandon Hummel will navigate you through this complex area of law. They will provide a brief overview of the most important risk allocation provisions contained in construction contracts and what types of breaches most often arise and under what circumstances. They will then focus on identifying the types of damages available in the event of a breach, when contract termination is appropriate, what proof is necessary to recover damages, and the likelihood of recovery under various contract breach theories. During the last part of the material, they will discuss best practices for drafting a construction contract to minimize risks and to maximize recovery.

Learning Objectives

  • You will be able to recognize key risk allocation issues that arise when drafting of construction contracts such payment terms, schedule, scope of work, standard of performance, warranty, indemnity, and dispute resolution.
  • You will be able to describe what types of breach of contract claims are often asserted in the construction context, what the elements of the claims are, when termination is the right option, and what proof is necessary.
  • You will be able to identify the types of damages a party asserting breach of contract claims based on non-payment, construction defects.
  • You will be able to explain what dispute resolution methods and forums may be most appropriate for your company if you become involved in construction disputes.