Delays in the completion of the project.
If the contractor agreement
specified an approximate time for the completion of the
project, the general contractor negligently failed to complete
the project on time, and the owner suffered damages because of
the delay, the owner may claim compensation. An amount of
damages can be agreed upon at the time the contractor
agreement is signed to cover this kind of breach on the part
of the contractor. (This is called liquidated damages.)
Improper payments occurs when the funds are not paid timely,
when the wrong amounts are issued, when funds are withheld
without justification – and when the recipient uses the funds
in an improper manner.
Omissions in the Contract Documents
Errors and omissions, in the contract documents, have a direct
bearing on the ability of the parties to interpret and agree
on the terms of the work covered by the contract. Resolution
of these types of disputes are extremely difficult to reach.
Change Orders are common in every project and to be expected.
And when they are a minor percentage of the magnitude of the
original project, they are usually handled without disruption.
However, when changes significantly change the scope of the
contract work, disputes often arise – and can be highly
difficult to resolve without third party participation.
workmanship and/or faulty materials
An owner may object to the quality of workmanship, either by
the general contractor or by a subcontractor hired by the
general contractor, or to the quality of materials used. It
will be much easier to resolve this kind of dispute if the
contractor agreement is very clear in specifying what
materials to use and how the project is to be done. If the
construction contract is vague, and says something like, "good
quality materials," the owner may find that his or her idea of
good quality is not the same as the contractor's and it will
be very difficult to prove what the contract meant.
Damage & Bodily Injury
Actions of contractors may cause damage to the property and/or
cause bodily injury during construction of a project – and
often do. It is so important to make sure the contractors have
proper and up-to-date liability insurance.