Defenses to Construction Contract Termination

When one party opposes the termination of the construction contract by the other party, various defenses may be asserted. These include waiver of breach, ratification of breach, failure to timely assert termination right, and substantial completion of contract. Action and inaction by a party can lead to a claim of waiver or ratification of the breach.

Valuation of Extras and Changes

Often during a construction project, the contractor will be called upon to either perform work according to a modification of the construction contract or perform extra work that was not called for in the original contract. However, the compensation that the contractor will receive pursuant to such change or extra work will not always be determined at the outset.

Identification of Construction Interruptions - Meaning of Delay, Disruption, and Suspension

The nature of construction interruptions will determine what legal ramifications will affect the project and those performing work on it. Within the construction context, common terms used for the failure to adhere to the construction schedule are: delay, disruption, and suspension.

Mechanic's Liens

The mechanic's lien, also known as a materialmen's lien, is a statutorily-created tool used by contractors, subcontractors, suppliers, and others to 1) secure payment for the work performed or materials furnished in the construction, repair, or improvement of a building or other structure and 2) protect against the unjust enrichment of the property owner.

LICENSING REQUIREMENTS

As a general rule, contractors, architects, and engineers must be licensed in order to engage in the erection of a new structure or in the repair, remodeling, or alteration of an existing structure. If a state requires a contractor, an architect, or an engineer to be licensed, the contractor, the architect, or the engineer will be subject to civil and criminal penalties for designing or for performing construction work without a license.