Breach of Contract in Construction Cases
A construction contract is an agreement between two parties for a construction project. When one party breaches the contract, the other party can sue for financial damages.
How Are Damages Computed in Construction Contracts?
Damages are computed in two different ways in construction contracts.:
Cost-To-Complete
This measure requires the losing party to pay damages to replace or complete the project the parties agreed upon when there are defects.
Diminution-In-Value
This measure requires the losing party to pay for the difference in value between the completed project and the specified project.
Are There Other Types of Recoverable Damages?
Yes, for example:
- Consequential damages
- Liquidated damages
- Nominal damages
- Specific Performance
Are There any Limitations to My Recovery of Damages?
Yes. here are some of the most popular ones.
Foreseeable Damages
The breaching party must be able to foresee that the damages will likely occur.
Certainty
Damages must be proven with certainty. For example, claiming you suffered emotional distress because your “dream house’” was built wrong is not measurable.
Duty To Mitigate
The party suffering loss has a duty to not make it worse. When a builder is constructing a house when the other party cancels the contract, the builder cannot finish the house and then recover damages for building the entire house. Although the other party is in breach of contract, the builder needs to ensure damages as minimized.
Can an Attorney Help Me?
If you think you are entitled to damages related to a construction contract, a business attorney can ensure you recover everything that you are owed.
Craig Cherney is a trusted client advisor and a sought after real estate lawyer and expert witness who is hired by the nation’s top Real Estate Litigation Attorneys to help resolve their litigated real property matters. Craig has appeared as a testifying expert witness before judges and juries in California, Arizona, Nevada and other jurisdictions across the country. Craig Cherney, Esq. Expert Witness Real Estate. 480-399-2342. If you are litigating an easement case, Craig Cherney might be able to help you advance and win your case.