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3 issues that can cause disputes during commercial construction

On Behalf of | May 9, 2024 | Contract Disputes

Commercial construction projects might involve remodeling an existing facility to meet the needs of new business tenants. They also include scenarios where a landowner hires a commercial construction firm to erect an edifice or expand an existing building on previously vacant land.

A commercial construction project can represent a massive financial investment on the part of an organization, landlord or property owner. It can also be a major source of revenue for construction firms and the professionals that they hire. Typically, commercial construction projects begin with the negotiation of a very thorough contract. The process unfolds in stages, and the client often does not pay the full value of the invoice for the work until the construction firm completes the project.

The vast majority of commercial construction agreements move forward with minimal conflict. However, some cause major legal disputes. The following are some of the most common reasons that commercial construction leads to conflict.

Significant construction delays

Particularly when a business or entrepreneur needs commercial facilities to operate a business, delays in project completion can be a major setback. Construction delays could be the result of poor planning, unexpected project complications or disruptions in the supply chain. Regardless of what causes the delayed completion of the project, construction companies may face pushback from frustrated clients who cannot operate their businesses profitably until the completion of the project.

Unprofessional work

Commercial construction projects do not always feature the same prestige finishing touches as high-end residential projects. Still, many companies seeking to erect or improve commercial facilities have specific standards they expect the construction company to meet. Whether the customer-facing spaces look sloppy and dark or there are issues with crucial systems, like the electrical wiring, work that does not conform to current professional standards could lead to significant disputes.

Deviation from contract requirements

Regardless of what current practices are in the construction sector, construction professionals and businesses need to prioritize the wishes of clients. Clients might request specific materials or may provide guidelines for the aesthetic or practical standards by which they intend to evaluate the finished project. It is necessary for construction firms to fulfill contractual obligations. Any significant changes to the project or deviations from the contract likely require communication between the construction firm and the client and then written approval of the changes to prevent litigation.

The parties embroiled in a construction dispute may sometimes need to go to court to resolve their conflicts. Reviewing contract terms can be a good starting point for those concerned about a disagreement related to a commercial construction project that may be headed for court.