If a contractor breaches the construction contract, you may be left wondering your options. Hiring a contractor for a construction project is a significant investment, and you expect the work to be completed on time, within budget, and according to the agreed specifications. However, when they fail to perform—whether through delays, poor workmanship, or abandonment of the project—it can leave you frustrated and financially strained.
Common Contractor Failures
Contractor performance issues can take many forms, including:
- Missed Deadlines: Failure to complete the project within the agreed timeline.
- Substandard Workmanship: Delivering work that does not meet industry standards or the agreed specifications.
- Noncompliance with Contracts: Ignoring specific terms in the construction contract, such as using inferior materials.
- Abandoning the Project: Ceasing work without justification or completing the project.
Understanding the nature of the failure is the first step in addressing the issue.
Review the Construction Contract
Your construction contract is the foundation for resolving disputes. It should outline:
- The scope of work.
- Payment terms.
- Deadlines for project milestones.
- Quality standards.
- Dispute resolution methods, such as mediation, arbitration, or litigation.
Review the contract carefully to determine whether the contractor has violated any terms. It’s also important to ensure the contract is written, as verbal contracts can come with additional complications.
Communicate With The Contractor
Start by addressing the issue directly with the contractor:
- Document the Problem: Take photos, gather receipts, and keep detailed records of the issues.
- Send Written Notices: Notify the contractor of their failure to perform and request a solution.
- Request a Meeting: Discuss the problem and try to resolve it amicably.
Clear communication can sometimes resolve disputes without escalating the matter further.
Hire an Expert to Assess the Work
If you suspect substandard workmanship or other issues, consider hiring an independent construction expert to:
- Inspect the work.
- Assess whether it complies with industry standards and contract terms.
- Provide a written report documenting deficiencies.
If the contractor has failed to perform, you may be entitled to withhold payment until the issue is resolved. Most contracts include provisions that allow you to delay or reduce payments if the contractor does not meet their obligations. Ensure that withholding payment complies with the terms of your contract, as improper withholding could expose you to liability.
If the contractor is licensed, you can file a complaint with the Oklahoma Construction Industries Board. This regulatory body oversees licensed contractors and can investigate complaints, impose penalties, or revoke licenses if the contractor is found to have violated regulations.
Pursue Alternative Dispute Resolution
Most construction contracts include a dispute resolution clause that outlines methods for resolving conflicts outside of court. Common methods include:
a. Mediation
- A neutral third party helps both sides reach a mutually acceptable resolution.
- Mediation is typically faster and less expensive than litigation.
b. Arbitration
- A neutral arbitrator hears both sides and makes a binding decision.
- Arbitration is more formal than mediation but still faster than a court trial.
These methods allow for dispute resolution without the cost and time associated with litigation.
File a Lawsuit in Wagoner County
If other attempts to resolve the dispute fail, you may need to file a lawsuit for breach of contract or negligence. In a construction-related lawsuit, you can seek remedies such as:
- Damages: Compensation for financial losses caused by the contractor’s failure.
- Specific Performance: A court order requiring the contractor to fulfill their obligations.
- Termination of the Contract: Legal cancellation of the agreement, allowing you to hire a new contractor.
In Oklahoma, the statute of limitations for filing a breach of contract lawsuit is typically five years for written contracts and three years for oral contracts.
Wagoner County Business Attorneys
When a Contractor Breaches The Construction Contract you have with them, you have legal options to protect your investment and seek resolution. From communicating directly with the contractor to pursuing legal action, each step helps address the problem and mitigate your losses. If you are dealing with contractor performance issues, contact Kania Law Office – Wagoner Business Law Attorneys at (918) 283-7394 or online for guidance tailored to your situation.
