When running a construction company, it helps to know the kind of disputes you may face. Armed with the basics may assist in navigating the claims.
Laws are not only in place to protect consumers but you as a business owner. Take a look at some examples of the more common reasons you may find your company engaged in disputes with clients and other businesses.
Construction defects
A common claim made against construction companies in Louisiana is one regarding issues with the structure itself. These fall under construction defects and may include
- Issues with building materials
- Installation mishaps for plumbing, electricity and the building
- Hazardous practices that make any element of a building unsafe
If your company specializes in home building, you may face action under the state’s warranty act. This protects homeowners from defects that cause issues within a home for up to five years after construction.
Breach of contract
Some issues you face may have to do more with another business. A common dispute that may arise between companies is a breach of contract. You may have agreements with suppliers, vendors and subcontractors that you rely on to do the work you have on tap. If someone fails to deliver under the terms agreed upon, a contract breach and appropriate remedies may apply. Should you feel like another business fails to meet the expectations outlined in a binding contract, you may need to take action for compensation.
Running a construction business takes knowledge and diligence. Having an idea about the common disputes that may occur can help you prepare in advance.
