Does Your Construction Business Need to File a Breach of Contract Claim? Learn More About Conflict Resolution

There are a variety of situations that may arise while a building or structure is being constructed or renovated. When involved with a small or even large-scale construction job, breaches of contract may occur. At these times, it’s important to consult with a construction law firm.

Builders Risk Coverage

For companies that work within the construction industry, Builders Risk Coverage is essential. This coverage, which is available for a year minimum, can be obtained by completing and filing ISO’s Builders Risk Coverage Form, CP 00 20. It’s important to note that this form is part of the Simplified Language Commercial Property Program.

Once coverage is obtained, it applies to both new buildings or structures being constructed as well as existing buildings and structures that are having additions, alterations, or repairs made. A construction lawyer will be able to further explain the importance of protecting your project by having this coverage.

Filing Breach of Contract Claims

When a construction company or independent contractor plans to file a Breach of Contract, there are time stipulations for filing this claim. In Texas, for example, these documents need to be filed within 4 years. There are exceptions to this requirement, however. This is the case when the contract indicates a claim must be filed within 2 years.

The Preferred Conflict-Resolution Method

When conflicts arise within the construction industry, the American Arbitration Association states that alternative dispute resolution (ADR) is the preferred process to address and resolve these issues. This method of conflict resolution tends to be much shorter than taking a case to court.

According to the American Arbitration Association, federal court statistics indicate that a civil jury or bench trial can last for over 2 years. The median length of these trials is 27.2 months.

When cases are mediated, they can take considerably less time. In 2015, for example, the median time period to resolve a case was less than 8 months, or only 232 days. This includes the period of time from which the claim was filed to the receipt of an award.

Claims and Counterclaims for 2015

A large number of claims and counterclaims are filed within the construction industry. During 2015, for example, these totaled $5.5 billion. At that time, the American Arbitration Association administered 551 construction industry cases that totaled $500,000 or higher. The largest mediated case for that year was $2.6 billion, and the largest arbitration case was for $96 million.

The American Arbitration Association also reported that the largest case resolved by a single arbitrator was for $232 million. The smallest case was a $23,000 claims, and it was resolved by 3-arbitrator panel.

h3>Data on Civil Cases Handled in State Courts

According to the Bureau of Justice Statistics, a national study was conducted in 2005 on the number of civil bench and jury trials handled in state courts. The results of this study showed that Breach of Contract cases comprised 33% of these civil cases. In terms of bench trials, plaintiffs won these 68% of the time. The plaintiffs win jury trials 54% of the time.

Contact a Construction Law Firm for a Consultation

If you’re asking the question, “When do I need a construction attorney?” chances are that are aware of the importance of being well-informed on construction law. It is also possible that you may be anticipating or currently experiencing some type of conflict. In either case, you can contact a construction law firm to discuss your issues and/or concerns.