Home Builder Breach Of Contract

Any contract is an agreement between at least two parties. When there is a problem, the party whose interests have been damaged may have claims for breach of contract. Read on to learn more.

Owner Delay

Let us say a General Contractor has a contract with a Sub Contractor to complete a roof. The contract says the time the project must be completed and the Sub Contractor must be paid so the rest of the building construction may continue. Should the roof be completed late, the Sub Contractor may be precluded from getting fully paid the amount had they finished on time. Significantly, the Sub Contractor may be on the hook for damages if the delay in completion causes other issues with the project.

Subsequent Purchasers

Normally a subsequent purchaser is not thought of as a beneficiary of construction contract. Therefore, they do not have the same standing to bring a claim against the original contractor. However they can make a claim against the original contractor if it was not properly disclosed at the time of sale.

Substantial Performance

A claim for substantial performance is when a builder or contractor may bring to a court when he buyer does not pay as the project is not entirely completed. Normally this form of claim will be of the advantage to the Sub Contractor and allows them and their team to recover a certain amount to match their substantial performance.

Tort

A tort claim can be recognized as an act or acts of negligence in a construction contract issue. This means the person making the claim is saying the party that caused the damage did one of four things to create negligence:

• There is a duty for the damaging party to carry out to the claimant
• This duty has been breached by the damaging party
• The breach has been caused by the damaging party
• The damaging party who caused the breach of duty merits damage for the claimant.

Source: https://info.vethanlaw.com/blog/4-potential-claims-for-breach-of-construction-contract

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