A breach of contract claim is a serious allegation when it comes to construction projects. In some cases, such as when there are construction defects, it can have a dramatic impact on the value of the property, which could reduce the cost for the property owner.
For instance, imagine that a general contractor is hired to build a condominium for $200,000. They hire subcontractors to do some of the work. These subcontractors make mistakes, leading to significant defects in the property. This violates the contract because the finished product is not of the quality that the client expected.
Because of these defects, the market value of the condominium drops by $50,000. As such, a customer may only have to pay the remaining $150,000. They can make a breach of contract claim so that they do not overpay for a property that immediately loses value.
When disputes arise
Naturally, a breach of contract claim can lead to many different disputes. In the aforementioned example, it could revolve around liability. Is the general contractor responsible, or is the subcontractor responsible?
Disputes could also relate to the value of the property. Perhaps the contractor admits that there are defects, but also says that they only really reduced the value of that property by $10,000. They are willing to reduce the final price for the customer, but they simply think that taking $50,000 off of that price is too much for what they consider a minor error.
These types of disputes can be very complex for parties on both sides. It can often help to work with an experienced construction attorney to find a resolution.
