When any construction or real estate project is concerned, contracts are an important part of the process. A construction contract provides important protections for the parties to the contract and for both contractors and homeowners or the owners of the project or building if the project is a commercial construction project.
In general, contracts provide duties and obligations the parties have agreed to but also provides protections for the parties if they fail to abide by their obligations. Construction contracts include details about the project and the work that will be done and how compensation will be handled related to the project. When a contract has been breached by one of the parties, the other party will have important legal remedies to consider.
The non-breaching party may be able to seek compensatory damages for the financial harm suffered; rescind, or cancel, the contract; or request specific performance of the contract, requiring the breaching party to perform their obligations under the contract. Because the contract relationship is essential to any business opportunity, construction project or real estate project, it is necessary to carefully draft the contract and trained guidance throughout the process can be useful in that regard.
Effective contract drafting can help avoid contract disputes down the road, however, it is equally important to understand how to address contract disputes and a breach of contract. Both contract law and construction law are complex which is why it is important for the parties to a contract to understand contract basics and what to do if a contract is breached.