The Hidden Impacts of Legal Expertise on Construction Development in Your Region
Construction projects, whether they are new buildings or renovations to existing structures, are susceptible to a variety of legal challenges. In the Arab world, these disputes are especially prominent because of the increasing rate of construction growth that far exceeds that of other areas of the globe. This rapid development not only creates local booms, but also draws in foreign investors and construction companies that inject cash into those economies.
Those who are involved in any aspect of these construction projects should find legal representation from an attorney who specializes in contract law and defense against construction dispute litigation.
While signing construction contracts may seem like a simple task, they are often the root cause of disputes. A qualified attorney in your area might help clients throughout the region understand complex issues such as the overall contract value and how they should break down payments into a schedule of completions on the project itself.
Some contracts are complicated and difficult to understand, even for experts. Having an attorney who is qualified to break down complex legal jargon is important for both parties when entering into construction contracts. Discovering problems before a contract is finalized might help avoid larger expenses in the near future.
Most contracts designate a specific amount of time required to complete a project; however, the unforeseen nature of construction work makes it difficult to stick to this schedule. Since there is little certitude, an experienced construction contract attorney near me will advise that schedules should include a reasonable amount of time to complete each phase of the project.
Disputes are common if a construction delay is inevitable. While there is a possibility of inclement weather delaying the progress of a project, encountering problems with materials or of being short handed as the result of sudden illness, the contract should include provisions to deal with missed deadlines.
The contractual language might state that the contractor is responsible for any fees associated with delays when they were responsible; however, penalties should not be excessive. The penalties should prevent the contractor from benefitting from the delay, so it is usually only in the amount of direct trade costs that are incurred as a result of the delay.
So that is how one gets out of construction contract disputes? Not quite. While it might seem counterintuitive to have an attorney that works specifically in construction law on speed dial, it is advantageous in situations where local economies are rapidly changing directions.
Due to the increase in demand for skilled construction professionals within the Arab world, the issue of having enough qualified labor for a construction contract is a real concern. An issue that occurs often is one in which a contract has been signed, and a local contractor has promised his services. He might have been deemed “the best person for the job,” however, if he is not able to fulfill his role down the line, that local contractor will be subject to additional penalties and higher costs to meet the original contract deadline.
Entering into any contract is a serious matter and understanding how to read each contract and discuss concerns with a trained attorney will help to save valuable time, money and manpower down the line.
There are many reasons why construction projects can fail. There could be a lack of confidence in a developer following the sale of one high profile project that flounders after the sale has closed. Or, a contractor might walk away from a deal despite a signed contract. The range is endless, but poorly written construction contracts are often the catalyst for these disputes.